Insights from the CEO
Insights from the CEO
You, as well as the rest of our investors, are always the top priority at Majestic State Holdings Ltd. We are committed to delivering the successful results that you want. Thus, our choice of the right investments, bonds, and stocks to deliver these results largely depend on your personal investing objectives and goals. We revel on the personal aspect of our job, and we are glad to have the chance to share with you our expertise and familiarity with the market.
US bonds and equities did relatively well in 2015, better than what a lot of people expected. The year 2016 started on the same track. The current job market is on the path to recovery, there is significant improvement in business and consumer confidence, and companies have started to pour cash into operations. The beginning of the year witnessed strong returns from the equities market.
While most markets are deemed fully valued, we opt to keep our money on a select few industries, specifically technology, energy, and industrials. To guarantee protection for our prices, we stick to holding/buying shorter maturities while keeping the duration low.
Outside the US, economies performed below par. In Europe, the struggle is partly because of the geopolitical tensions in the Middle East and Ukraine, the extreme cautiousness of the central bank, and the renewed threats from Greece that can potentially tear the European Common Market apart. Slower global trade and dropping commodity prices, on the other hand, are adversely affecting the emerging markets.
However, 2016 is expected to wind up as a comparatively decent year for US equities, in spite of all these dramatic world events. The US is currently experiencing GDP/economic growth at a rate of 3%, firmly entrenched fiscal restraint, low inflation, as well as improved consumer spending that is spurred by low interest rates and prices of commodities.
The consumer sector is expected to become even stronger with the growth enjoyed by the jobs market, an increase in real wage gains, and a significant improvement in confidence. An increase in investment spending is likewise seen. To capitalize on these opportunities that resulted from investor confidence, analysts at Majestic State Holdings are studying possible positions and consumer staples.
In this dynamic environment, we expect that our stock selections that are culled from a wide variety of sectors, including a few select emerging markets, are sound enough to give our portfolios a consistent income stream over the short term.
A welcome development is the rally mounted by gold this quarter because of a bigger demand from Asia, as well as the need to flee to safety brought about by the unrest in Russia and Ukraine. In our opinion, retaining shares in hard assets and precious metals in our portfolios is a sound move because of their proven ability to appreciate during inflationary and uncertain times, and the significant help they provide in capital preservation. The asset class has, as history will show, delivered uncorrelated returns with fixed income and equity markets.
Based on our experience, the key to investing successfully in the precious metals market is to stay committed to the investment objectives, keep investments at appropriate risk levels, and move tactically within the market to safeguard against downside losses and take advantage of upside gains. We have long proven the merits of our disciplined approach to market selection with consistently smooth returns and strong performance.
Throughout the whole proceedings, we maintain our dedication to your investments, your money, and you. We are willing to discuss our ideas, opinions, investing principles, and strategies with you via phone calls of meetings. We are also open to your comments, clarifications, or questions. All you have to do is contact us.