Our investments are shaped by a philosophy that provides the long-term framework for our investments. It ensures stability in what we do. The philosophy can change but should do so only rarely.

Presently, we are witnessing a period of stagnation, during which too much is being saved and too little invested. This is leading to a weakening of demand, with commensurately weak economic growth and low inflation. Moreover, the disequilibrium between the saving and investment rate is resulting in very low real interest rates. But if greater growth does result during a period of stagnation, as a rule this occurs due to very low central-bank interest rates, which can easily convert the surplus savings into excessive investment (as happened in the United States between 2003 and 2007).

The high overall indebtedness in the Western world, the aging of societies, and diminishing technological progress – all of these factors are doing their part to contribute to the long-term persistence of the period of stagnation.

In this philosophy, it stands to reason to expect greater assessments for growth (e.g., in the technology sector) or high rates of interest (as they are paid by bonds outside the investment-grade area).


Eyb & Wallwitz – Intelligent investing