QUESTION: The number of listed stocks is falling across many exchanges. Which stocks should I buy?
ANSWER: Your question is the wrong one for investor interested is getting a reasonable return of any given risk preference. The question should be what shouldn’t I own?
Since the nadir of the global financial crisis (“GFC”) in 2009 the listed equities markets have profoundly changed because:
- the proliferation of private equity funds;
- the increased availability of private debt to companies and investors;
- the shift from active management to passive management in public equities’ markets; and,
- gamification, rather than investing, by small retail investors.
In short, picking winners requires now requires an even larger edge in information (non-public mostly) and analysis, whereas picking losers in the listed markets requires mostly analysis and public information.
TSA expects the number of listed equities to continue to shrink.
Contact TurnerStreet if you wish to buy our current asset allocation recommendation (we do cash and equity only allocations for our wholesale clients), and the list of the stocks TurnerStreet would buy for a typical wholesale client, or if you would like TurnerStreet to manage your equities and derivatives portfolio.