In presentations to various sophisticated investment professionals, one of the most surprising revelations has been that many have far less knowledge about the systemic risks embedded in the broader markets than do our clients. While they are increasingly aware of well-respected investors voicing increasing discomfort with various structural excesses, such as the national debt, they are not cognizant of the very real and specific threats posed to them or their clients.
Unfortunately, the odds just shifted for the worse. A far greater threat has arisen: of technological disruption from outside the major indexes, with the potential to be destructive to large sectors within the indexes, in particular the Financials and Information Technology. This is the emergence of cryptocurrencies such as Bitcoin. The potential disruption to the status quo is sufficiently great, in our view, that all investors should, at the least, be exposed to this topic. It merits serious discussion.Read More >