Investors are Seeking the Right Answers to the Wrong Questions

Capital cycles are imperfect, showing a tendency for booms and busts. Over the past year, investors have focused on the economy and interest rates when assessing risk. That emphasis may be misplaced because that wasn’t where the boom was.

Rob Almeida suggests that while recent market turmoil may not last, a backdrop of higher costs and lower growth could make for a more challenging operating environment ahead.

Rob Almeida suggests that investors should be more concerned about fundamentals than potential rate cuts.

In the consumer staples space, clear profit visibility has given way to tech-driven disruption. As a result, separating the winners from the losers requires deep research and an appreciation of nuance.

The market is currently correcting mistaken assumptions that were based on a market cycle driven by artificially low interest rates. As market dynamics shift, the source of a company's growth will also shift.