In this year’s survey, they polled Canadians with investable assets from across the country. The aim was to rethink what is know about Canadian investors – across generations and by gender. In the process, they hoped to both confirm and debunk some conventional thinking as it can also lead to conventional attitudes and behaviours. Focus was placed on how Canadians are investing and why.
The economy was supposed to fire on all cylinders in 2015. Sufficient time had passed for the often-mentioned lags in monetary and fiscal policy to finally work their way through the system according to many pundits inside and outside the Fed. Surely the economy would be kick-started by: three rounds of quantitative easing and forward guidance; a record Federal Reserve balance sheet; and an unprecedented increase in federal debt from $9.99 trillion in 2008 to $18.63 trillion in 2015, a jump of 86%. Further, stock prices had gained sufficiently over the past several years, thus the so-called wealth effect would boost consumer spending.
So what happened?
For those investors that are not familiar with Nevsky, it and it's founder Martin Taylor have one of the most successful investment track records within the hedge fund universe. After generating cumulative investment returns of 6,406% over the past 20 years, Mr. Taylor has decided to closed down their funds and return the money to investors. Their decision to close down is not because of poor performance, but because they find they can no longer invest with confidence in the current market environment and their growing fears of the unknown.
Their letter is well worth reading for any of you that are serious about investing.