Author: Stefan Markus Kremeth

Good Morning Ladies and Gentlemen

“If term premiums rise, they could do some of the work of cooling the economy for us, leaving less need for additional monetary policy tightening.”

 Lorie K. Logan, president and chief executive officer
of the Federal Reserve Bank of Dallas

What is happening?

Although it seems that the inflation momentum has been broken, there has been a massive sell-off in the bond markets over the past few weeks and interest rates have risen. The term premium shot up, even though inflation was mainly in line with expectations. Many market participants were surprised by this interest rate tsunami and lost money on their long bond exposure.

A question of demand and supply

Monetary authorities are shrinking or trying to shrink their respective balance sheets, i.e. they are increasingly dropping out as buyers of government bonds. The Fed, for example, is cutting its mountain of Treasuries by USD 50 bn per month. This means that high sovereign issuance is meeting less and less demand, and finally, investors are asking for ever higher compensation for the risk of investing in long-term bonds. The yield on ten-year U.S. Treasuries briefly scratched the 5% mark last Friday.

The war in the Middle East’s influence

However, an external event has broken the interest rate trend since last weekend. The war in the Middle East has led to a flight to safe havens, and government bond yields have thus returned somewhat from their highs.

The difficulty

Ladies and Gentlemen, the difficulty for global monetary authorities will be taming inflation without risking economic calamities. That is quite a task, and as we have learned in last week’s “Stefan’s Weekly”, in an ideal world and theory, rising interest rates should tame inflation, while government spending on infrastructure projects and the like should prevent the economy from stalling and yet, unfortunately, the theory is not always ideal.

Possible Conclusion

If we go back to Lorie K. Logan’s quote, “If term premiums rise, they could do some of the work of cooling the economy for us, leaving less need for additional monetary policy tightening” at the beginning of today’s “Stefan’s Weekly” we may conclude that the market is effectively doing the Fed’s work. The Fed would need to tighten less or tighten no more; in other words, I believe there is a fair chance that no more rate hikes are coming. Interesting, no?

Your point of view

Ladies and Gentlemen, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to: smk@incrementum.li.

Many thanks, indeed!

I wish you an excellent start to the day and a wonderful 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 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li

Good Morning Ladies and Gentlemen

“‘The distinction between ideal theory and nonideal theory was first introduced by John Rawls in his classic “A Theory of Justice”. Given certain facts about human nature and possible social institutions, Rawls’s ideal theory is an account of the society we should aim for and involves two central assumptions. First, it assumes full compliance of relevant agents with the demands of justice. Second, it assumes that society’s historical and natural conditions are reasonably favourable. These two assumptions are individually necessary and jointly sufficient for his ideal theory. For Rawls, nonideal theory primarily addresses how the ideal might be achieved in practical, permissible steps from the actual, partially just society we occupy.”

 Christopher Thompson

10-year U.S. government bond yield

The 10-year U.S. government bond yield is slightly over 4.7%. The 5.2% mark represents significant resistance for the 10-year yield.

JOLTS

U.S. job openings rose by 700,000 in August compared to the previous month. This figure is calculated monthly by the U.S. Bureau of Labour Market Statistics. JOLTS means “Job Openings and Labor Turnover Survey”. In addition to the JOLTS report, initial jobless claims since July also indicate the strength of the U.S. labour market. Some market participants view this resilience negatively because it may indicate that the Fed has difficulties slowing the economy and may be forced to raise interest rates again.

Ideal theory

If yields rise, stock markets tend to react negatively. The question is whether a high yield of 10-year U.S. government bonds also means a low in the stock market. An example is October 2022, when the high yields meant the low for the year in the S&P 500. A look at 1994 shows similar behaviour in the spring of that year. The S&P 500 continued its downward movement in the fall of 1994 when interest rates did not fall immediately but remained on a plateau and disappointed investors. October 1987 also offers a negative prime example of a sharp rise in interest rates. The stock markets panicked at that time after forming a lower high point.

1987 or even 1929 all over again?

There are enough considerations that the current situation is similar to that of 1929 or 1987. One could argue that the season (October) of 1987, strongly rising yields in 1987 and 1929, and the jump in the VIX (1987) are clear signs. Ladies and Gentlemen, those who know me know that it is stronger than me, and I apologise for it, yet I cannot take these arguments for granted because today’s situation is different.

Big difference

There is one significant and colossal difference: in 1929 and 1987, the markets increased excessively and reached new highs in the months before the crashes. In the current cycle, the high of January 2022 (in the Nasdaq November 2021) was not reached again. This year’s high in July 2023 actually means a lower high.

Lessons from the past I

In the autumn of 1987, the crash in the stock markets led to a sell-off in yields. In the autumn of 1994, the October-December yield plateau (yields stayed up) unnerved the equity markets and led to a 10% correction.

Lessons from the past II

There is absolutely no guarantee that sharply falling yields will cause stock markets to rise. As long as yields maintain their upward trend or stagnate at the top, equity markets may not like it. But then again “theory” may not be ideal.

Conclusion and 10-year U.S. government bond yield

As I mentioned earlier, the 10-year U.S. government bond yields slightly over 4.7%. The 5.20% mark represents significant resistance for the 10-year yield. I am fascinated by the current market environment and I recognise threads but also opportunities and in general see the glass half full, but then and as always, that is just my humble point of view.

Nonideal Theory

At the end of the day, Ladies and Gentlemen, the ideal theory does not always unfold and nonideal theory is reality, whether we are talking about human beings in general, constitutional law, politics, the philosophy of financial markets, or any other aspect of life.

Your point of view

Ladies and Gentlemen, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to: smk@incrementum.li.

Many thanks, indeed!

I wish you an excellent start to the day and a wonderful 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 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li

Good Morning Ladies and Gentlemen

“‘Hindsight bias makes surprises vanish.”
Daniel Kahneman

Introduction

Ladies and Gentlemen, some months ago, I was asked to write an article on Liechtenstein as a hub for private wealth management services for the executive global magazine. I looked at it as an exercise to see if I would still choose Lichtenstein as the hub for Incrementum’s business.

Link:

I have included the link to the article for your convenience and hope you like it. Enjoy the read:
https://www.incrementum.li/en/journal/executive-global-magazine-liechtenstein-a-solid-hub-for-private-wealth-management-and-family-offices/

Your point of view

Ladies and Gentlemen, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to:
smk@incrementum.li.

Many thanks, indeed!

I wish you an excellent start to the day and a wonderful 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 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li

Good Morning Ladies and Gentlemen

“Do people become unhappy when they are full and unthreatened?.”
anonymous

Introduction

Ladies and Gentlemen, I was asked to participate in a short interview for the Swiss-French Magazine “BILAN” by its former editor-in-chief. The topic was BlackRock’s and Templeton’s application for licenses to issue Bitcoin ETFs. I had the questions and my answers translated for your convenience.

BlackRock and Templeton have applied to the SEC for a license to issue Bitcoin cash ETFs. What do you think of their potential?

I am convinced there will be interest and, therefore, a market for it. Two large, well-known providers offering tradable and regulated products on a crypto-currency that has until now been little or unregulated will certainly attract investor interest. We must not forget, however, that Bitcoin, i.e., the underlying asset, is still largely anonymous, unregulated and relatively unknown.

If these products were approved, would it be bullish for BTC by creating demand from institutional investors?

I think BlackRock and Templeton have enough investors in their networks who can get excited about investing in such products. As the ultimate number of Bitcoins remains limited, additional investors should, under normal circumstances, lead to additional demand, and while supply rests unchanged, this would, I assume, lead to a price rise.

What could be the risks for investors?

To be honest, the data on Bitcoin is a bit thin. So far, we do not know who created the network. We still do not know who invented the Bitcoin cryptocurrency and who hides behind the pseudonym Satoshi Nakamoto. On the other hand, we do know who is behind the much-maligned U.S. dollar, the euro and the Swiss franc. Behind all these FIAT currencies, there are national economies with citizens, territories, companies, a tax base, and so on. What do we know about Bitcoin? We know that the Bitcoin white paper was published in October 2008 and that the first version of the Bitcoin Core reference implementation was published in January 2009. We also know that the network consumes a great deal of electricity and that Bitcoin transactions can be processed 24 hours a day, anonymously and free of charge, in a largely unregulated framework. The risks are, therefore, of a different nature. Because we do not know who is behind the network, we cannot know whether it is an intelligent individual or maybe a criminal organisation. Moreover, financial market regulations (anti-money laundering act, anti-tax evasion policy, etc.) may suddenly lead to increased demand for transparency or, depending on the state, even a total ban on crypto-currencies. Who knows?

Which clients should be advised to use this type of product?

The underlying of such pure Bitcoin products have no intrinsic value. This is why I would, if at all, only recommend such products to investors who can handle high volatility and even live with a total loss.

Recession?

Ladies and Gentlemen, I still receive many messages on the recession topic, mainly because Germany is in a recession; Switzerland is slowly but surely going in the direction of zero growth, and despite the Fed’s aggressive interest increases, the U.S. economy is still comfortably growing. Yes, there is this massive gap between the U.S. and Germany. The reasons I like to look at the U.S. numbers while working in Liechtenstein, living in Switzerland and mainly investing in Europe is that not only the data published by the U.S. government, the Fed, etc. is vast and easy to access, but, and this is probably very important to most investors anywhere, the U.S. financial markets play the leading role in global financial markets and therefore have a significant influence on most other financial markets across the globe. In any case, it seems some economists have postponed the projection of a U.S. economic downturn because of the immense spending programmes by the U.S. government that are likely to take more and more effect in the months and years to come.

Your point of view

Ladies and Gentlemen, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to: smk@incrementum.li.
Many thanks, indeed!

I wish you an excellent start to the day and a wonderful 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 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li

Good Morning Ladies and Gentlemen

“It is also human not to always give in to every fear.”

Joachim Wilhelm Gauck, President of Germany from 2012 to 2017

Last weekly

Ladies and Gentlemen, I received significant feedback for my last “Stefan’s Weekly”. In summary, I am happy to report that many readers share my conviction that we should treat tail risks as such and not overestimate them, and of course, that it is suitable for investors to change their perspective from time to time consciously. Maybe this will change their mindset or investment behaviour; if not, it will confirm one’s existing perspective, which is a flattering experience for most people. One feedback stuck out to me, and I would like to share it with you. It comes from John, and it goes like this: “Hoarding gold, crypto, and food means nothing if you do not have a solid community. You would be robbed, or money will eventually run out. A community is necessary to get out of tough times.” What can I say? I totally agree.

German residential construction

One of the sectors I usually keep an eye on is residential real estate. Residential real estate plays an essential economic role in many countries. In Germany, the crisis in residential construction continues to worsen. In August, 20.7% of companies reported cancelled projects, up from 18.9% in the previous month. This is according to surveys by the IFO Institute. “Cancellations in residential construction are piling up to a new high. We have not seen anything comparable since the survey began in 1991. The uncertainty in the market is huge,” says Klaus Wohlrabe, head of IFO surveys. Yesterday’s interest rate hike by the European Central Bank, the tenth in a row, is unlikely to lead to a positive change in these survey results, but risks to hit the sector again. For me, this data means I still keep my hands off the sector.

Macro versus bottom-up

Some analysts, bankers, fund managers and the like are trying hard to predict the economic future of economies, make a business model out of predicting it, and perhaps even invest investors’ money according to their prediction. The point is, it is utterly difficult to foresee the future also in macroeconomics, and most models are, if I want to be generous, not entirely flawless and if I do not want to be generous, total crap.

The effect of compounding

That is why we have taken a different approach for our private customers. We focus on business sectors that promise positive cashflows over the cycle and try to find companies and their seasoned business models within these sectors in a bottom-up approach that are available at reasonable prices, i.e. valuations. Those companies must be willing to share the generated cashflows with their investors. The approach is very long-term; short-term volatility is an intrinsic part of the investment style. The beauty of it comes from the exponential effect of compounding. Dividend payments can be reinvested and lead over time to ever more cashflows. Hard data on the macro environment, i.e. not forecasts, may have an influence on the sectors we look at, as outlined in the example of the German real estate sector.

Wrap up

The audacity of some market participants to believe in being more competent than the entire cohort of financial market participants is striking to me. I think that only because the average investor forgets very quickly and is either unaware of or unable to fight the confirmation bias, macroeconomic forecasts play such a prominent role in investment management. Keeping the macro environment in mind while following a strict bottom-up approach seems more sensible to me than trying to call any subsequent interest increase or decrease in some opaque process.

Your point of view

Ladies and Gentlemen, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to: smk@incrementum.li.

Many thanks, indeed!

I wish you an excellent start to the day and a wonderful 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 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li

Good Morning Ladies and Gentlemen

«You can always tell when a man’s well-informed.
His views are pretty much like yours.»

Bob Hope

No big fan

I receive many emails from readers who seek total financial protection from the next financial crisis, global economic crisis or worse, World War III. The ones following my “Stefan’s Weekly” for the last few years know I can not think much of this. Unfortunately, there is no such thing as total protection in life. I too, do like to have some protection, like a place I own and live in, insurance and healthcare coverage, some small bills of different currencies, some physical precious metals in small denominations, water and food. However, hoarding such assets and perhaps even cryptocurrencies in vast amounts is not my thing and is far too ideology-driven for my taste.

The world off the rails

If the world goes off the rails as some people may think it will, one can perhaps buy a lot with very little precious metal and the like and maybe even become relatively wealthy for some time. However, if such a scenario comes to pass, I have no difficulty imagining the new world currency would be “food” and “shelter”. In such an environment, large cohorts of humanity may fall back from the top of Maslow’s pyramid of needs to its bottom, and I fear that even by owning so-called hard assets, you may not be able to escape any of this. Civil wars, brutalisation and perhaps a prolonged global conflict could follow as probable scenarios. Yet, I do not believe at present in such a development.

My rather personal view

I have absolutely no understanding for people who indulge in disaster romance. In such thought games, I see an outgrowth of boredom of a spoiled, somewhat too wealthy, and without reasonable tasks living small cohort of people who believe to know it all. I hope you, Ladies and Gentlemen, dear readers, will not associate with such people. It cannot possibly make you happy to think about such dark scenarios.

Furthermore and conclusion

From an investment point of view, it certainly makes sense not to put all eggs in the same basket. Alternatively, it probably makes sense to try weighing the probability of your scenarios and not only trying to protect yourself from tail risks with your entire fortune. Also, I believe it makes sense to keep ideology out of your investment principles. Think about it.

Seasonal Reflections

Moreover, Ladies and Gentlemen, Incrementum’s top performer on the fund management side, Hans Schiefen, publishes his “Seasonal Reflections” every quarter, hence the name. Last week, I quoted him or someone he had quoted in the latest edition of his thoughts on paper. One or the other of you asked me if I could add a link to the full paper, which I gladly do. Please feel free to click on the link below for your convenience:

Incrementum All Seasons Fund Seasonal Reflections – 2023/03 – Incrementum

As always, my thoughts do not necessarily fully match Hans’ or anyone else’s. This is why, at Incrementum, we have lively discussions during our asset allocation meetings.

Your point of view
Ladies and Gentlemen, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to: smk@incrementum.li.

Many thanks, indeed!

I wish you an excellent start to the day and a wonderful 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 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li

Good Morning Ladies and Gentlemen

«I’m not getting old – I’m evolving»

Keith Richards

Extrapolation of bad news

I do not want to be part of the people sending negative news. By my nature, I usually see the glass half full. However, the media plays an essential role in extrapolating bad news. It seems that short-term negative changes are often turned into negative trends. On the one hand, this is based on the scientifically proven fact that humans are characterised by a psychologically inherent risk and loss aversion. On the other hand, as I repeatedly pointed out in various publications, because of this deep-seated risk and loss aversion, bad news sells better than good news, which the media is ruthlessly exploiting. Nevertheless, the impact of the cost of money can not be neglected.

What about U.S. government bond yields

But first, let us have a look at U.S. government bond yields. This is important because they represent the price, i.e. cost of money. Now, this may be mainly concerning market participants anticipating fewer interest rate cuts next year, and yet I still find it interesting to look at and think about it.

Slightly easing

U.S. government bond yields are somewhat easing again, while they were rising sharply during the summer when trading was weak. After a survey on Wednesday signalled that U.S. business demand for labour cooled in September, yields slipped again, falling to less than 4.1% on 10-year Treasury bonds – they had been more than 4.3% last week. Two-year U.S. paper also fell by 0.2 percentage points within a week. (As a result, the interest rate advantage over the euro area was also falling, boosting the euro against the U.S. currency. From the daily low of around US$1.078 on Tuesday, it went up to more than US$1.092 on Wednesday).

However

As my partner, Hans Schiefen pointed out in his “Seasonal Reflections”, Michael Lewitt from Credit Suisse concluded, “Low rates lowered I.Q.s along with the value of the financial instruments they debauched, leading people to buy worthless SPACS and cryptocurrencies, grossly overvalued IPOs, even more grossly overvalued stocks after they went public, and egregiously overvalued credit instruments of all kinds. Now, the cost of money is being reset by central banks because they lost control of the inflation narrative (particularly financial asset inflation – long ago). Investors have yet to adjust to the cost of money, which is not going back to zero (or below zero) absent another financial crisis (which, if you look at government finances, is a real possibility, but that is a topic for another day). For now, rates will remain well above zero, which means all the assumptions that led public and private actors to borrow trillions of dollars will be tested (and borrowers will flunk those tests).”

The cost of money

Ladies and Gentlemen, as Michael has so aptly formulated, the significant impact the cost of money may have on various financial instruments (and he pointed out some of them) should never be underestimated.

Closing remark

Although I am a genuinely positive person, I am always concerned by the cost of capital or money, as Michael named it. I am considering it when investing for our private clients, and today I have the impression that, at least in some financial instruments, some of the effects are already priced in. Yet, if interest rates continue to go up for a few more quarters, market participants may not be impressed.

Your point of view

Ladies and Gentlemen, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to: smk@incrementum.li.

Many thanks, indeed!

I wish you an excellent start to the day and a wonderful 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 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li

Good Morning Ladies and Gentlemen

«Prosperity is a state of mind. It is your expectation. Expect to expand your wealth, your wealth of knowledge, your relationships, your income and your wisdom.»

Anonymous

What is the best environment for people to prosper? The other day, I was thinking about China and Russia, the U.S. and Europe, and I asked myself in what sort of environment and as a young person I would try to find my way to prosperity today.

Why?

You may ask why I was thinking about that. The thing is that I was asked to write an article about the advantages of Liechtenstein as a centre for financial services and I was thinking about the difference between Liechtenstein and other places. Let me share some of my thoughts.

My basic belief

Any sensible national economy moves in the triad of freedom, peace and prosperity. Freedom and prosperity are closely linked. Freedom in a constitutional state and as a private law society of potential and actual owners is a society that supports its citizens in creating and maintaining prosperity. A society of free people will be a prosperous society in the long run. To me, prosperity means access to material goods and services and human freedom. It includes well-being, peace, security, independence and the chance to participate in society.

Liechtenstein

The Principality of Liechtenstein has created and offered almost ideal conditions to prosper for its population over the past decades. Freedom, peace and prosperity are a cornerstone of these conditions.

Tax and prosperity

The spiritual fathers of modern Liechtenstein realised early that no social safety net could be built without monetary means and that any state has such monetary means only when its economy is functioning. They installed incentives to maintain a flourishing economy, such as competitive tax laws or allowing its communities to secede, thus granting them ultimate self-determination under the country’s constitution. The other day, I read that “no nation ever taxed itself into prosperity.” I could not agree more!

Too much politics

Some short-term political trends may seem very tempting, as they promise votes at least in the short-term, but in the longer term, as can be seen in various examples of Western economies, they usually lead to a reduction in competitiveness and, thus as a result, less prosperity for the country’s population. Looking at long-term cross-border movements of human- and financial capital offers a good insight into any economy as both human- and financial capital go where it pays to invest labour and/or capital. For decades, the tiny principality has attracted human and financial capital and offered by far more jobs than it has inhabitants. Liechtenstein has a healthy social market economy, no government debt, follows a strict budget discipline, and is open for business but not at any price.

Copy paste

Why other countries are not taking the political and economic basics of Liechtenstein, and trying to create a prosperous environment along those is a mystery to me. Obviously, we are talking about a small country with a small population but 120 years ago that population was among the less fortunate in all  Europe.

Your point of view

Ladies and Gentlemen, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to: smk@incrementum.li.

Many thanks, indeed!

I wish you an excellent start to the day and a wonderful 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 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li

Good Morning Ladies and Gentlemen

«I always felt that failure was a completely underrated experience.»

Kevin Kostner

After my last weekly mail, I got involved in exciting conversations with some readers. The recession topic is certainly not off the table, and especially for our friendly northern neighbour, Germany, I believe a shrinking German economy is something we all have to get accustomed to under their current government.

However

I would not be surprised to see attractive returns in the financial market still this year. The adverse reporting by many media, banks, analysts, etc., is quite often a good counter-indicator and yet, any broader recession in the coming year also seems possible to me. Cooling labour markets in Western economies at a time when China cannot pull us out of the muck could have unpleasant consequences for the real economy and, thus, for capital markets, which would probably and traditionally anticipate such.

Do you know what you want?

Today’s «Stefan’s Weekly» runs under the title «Do you know what you want?». I came up with this topic because I am gaining the impression that many market participants do not know what they want or expect from their investments. Making money certainly is one expectation, and low volatility is probably another. Unfortunately (No.1), there is a relation between volatility as a risk measure and return. There is no free lunch, Ladies and Gentlemen, and the price you pay for your return is risk (or volatility). Unfortunately (No.2), by taking on the risk, you cannot expect automatically to receive a return.

I know

This seems utterly unfair, yet this is just how it is. Ladies and Gentlemen, I know of people with millions of cash sitting in their bank accounts. They are losing purchasing power year after year, which they know and readily accept as long as they do not have to accept market volatility. They cannot handle it and know that and are willing to pay the price of a loss of purchasing power in return for their peace of mind. Fair enough; at least they know what they want or do not want.

Tangible and productive

As an owner of equities, you are a co-owner of a business. This seems like a pretty good deal because co-owning a business means you have a somewhat tangible and productive asset in your portfolio. However, it is crucial to choose suitable investments; overpaying on price/earnings ratios and/or book value, etc., never seemed very attractive to me. If you invest in a cash flow-generating business with a proven track record and are not stressed out in the short term, you will probably be compensated for your investment in the long term. You will probably not have the fantastic returns of the (Nasdaq) potential high-growth companies, but you will not have to endure the, at times, nerve-wrecking volatility of such an investment either.

This is why

You need to know what you want, i.e. expect from your investment. If you are clear about that and invest accordingly, your peace of mind will come about.

Your point of view

Ladies and Gentlemen, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to: smk@incrementum.li.

Many thanks, indeed!

I wish you an excellent start to the day and a wonderful 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 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li