The Goal

Good Morning Ladies and Gentlemen

“All this hasty ‘shooting from the hip’ will have massive long-term consequences for U.S. financial hegemony. Washington is increasingly losing control here.”

Ronald P. Stöferle, Partner at Incrementum AG

From a historical standpoint, the belief that relations between Europe and the US have reached unprecedented precariousness today is fundamentally misguided. Such alarmist claims often stem from a deliberate disregard for historical context. When the past is overlooked, it may seem that current events are entirely novel.

More than One Goal

In our discussions about investing, we often look at goals that align with common aspirations, such as building wealth and securing financial security. However, it’s important to acknowledge that specific goals can differ significantly based on the unique needs and circumstances of individuals or groups. In today’s „Stefan’s Weekly,“ I have compiled a list of goals for four key stakeholders.

1. Our Investors’ Financial Goals

Our private investor’s primary objective is to achieve long-term growth in real wealth that aligns with their risk profile and individual needs. Most of our investors aim to preserve and enhance their purchasing power, targeting real (inflation-adjusted) wealth growth over a defined investment horizon rather than just in the short term. Depending on their risk appetite and goals, priorities can vary, such as capital preservation, which emphasises security and low volatility, and current income, which focuses on earning interest and dividends with moderate risk and limited volatility. Essentially, we advocate for a balanced approach to wealth accumulation that combines income generation and capital gains while maintaining moderate volatility.

2. Incrementum’s Goal is Our Commitment to Investors

We help our clients with a proactive, fundamental investment strategy. Our investment decisions are primarily guided by the fundamental strengths of individual companies and their operational performance. We place a strong emphasis on quality, sustainability, and long-term value creation. While we consider political and macroeconomic factors in our analysis, they do not take precedence in our approach. Ultimately, what matters most to us is the underlying business fundamentals, independent of short-term external influences.

3. The Goal of Financial Markets

Investors expect well-functioning financial markets to provide a dependable, equitable, and efficient framework. Markets should allocate capital effectively, enable transparent price formation, provide adequate liquidity, and support long-term investment strategies. While temporary volatility is tolerable, persistent distortions or any loss of integrity are not. Investors, therefore, expect financial market operators to deliver transparency and clear risk disclosure; a strong commitment to investors’ interests, free from hidden conflicts of interest; reliable market access together with secure settlement processes; and professional risk management that safeguards systemic stability. In short, financial markets should enable long-term value creation, and their operators must earn investors’ trust through integrity, transparency, and a consistent focus on investor interests.

4. Authorities’ Goal: Stable and Trustworthy Markets that Serve the Public Good

Authorities, supervisory bodies, and policymakers anticipate that financial markets will be stable, transparent, and driven by integrity. These markets should operate smoothly, facilitate reliable price formation, and mitigate systemic risks to safeguard both investors and the broader economy. Regulators and policymakers expect market participants to establish robust governance structures, implement effective risk management practices, provide clear and comprehensible information, and ensure consistent adherence to regulatory requirements. Protecting investors and consumers, maintaining market integrity, and ensuring compliance are seen as essential prerequisites for fostering lasting trust. In essence, financial markets should serve the public good, with their participants responsible for promoting stability, transparency, and trust.

Ladies and Gentlemen

Feel free to send your messages to smk@incrementum.li. Many thanks, indeed!

I wish you an excellent start to the day and weekend!

Yours truly,

Stefan M. Kremeth
CEO & Head of Wealth Management
Incrementum AG – we love managing assets

Tel.: +423 237 26 60
Cell: +41 79 303 48 39
Im alten Riet 153
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li