New Tools are Needed for the New Paradigm

(edited transcript) … We are not in the same economy we were in 50 years ago. The greatest cautionary adage is, this time is different. And I’m not saying that exactly. But things do change. Things do evolve. We used to be retail, traditional banking, manufacturing, textiles. Now we’re in a very tech-driven, service-driven economy. And so, I think that does lessen some of those correlations that existed in the past. Companies that grow at higher rates usually demand higher valuations. And so that’s not necessarily troubling. Again, you can’t summarize an entire market or economy by one number. As much as people try to do it. You’ve really got to piece it and look underneath. I think it’s also a huge reason why investors have been so off. They’ve been incredibly bearish. You know they look around and their neighbor’s business might be shutting down. And they’re like, “Well how can the S&P 500 go up so much?” The S&P 500 really has no correlation to your buddy’s local pizza business. Once upon a time, though of course, those companies weren’t in the S&P 500, I think they were indicative of just kind of that more traditional-based economy. Now those big companies are so far removed. I think it’s just a more complicated market to try to invest in. That’s why we rely not only on a bunch of internal partners, but external partners to help us evaluate as many different things with people who have the time to be focused on a specific area as much as they can to do, you know, as good a job for our clients as we can.

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New Tools are Needed for the New Paradigm

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