Opening Statement from the October 2015 Intelligent Investor

Opening Statement from the October 2015 Intelligent Investor

Originally published on October 7, 2015

Review of the Past 12 Months

First, let’s summarize our assessment and guidance from the past 12 months. Although we have remained bullish on the US stock market for several years, approximately one year ago we began advising investors to gradually raise cash selectively and on strength.

Our rational for this investment strategy was based on our belief that global risks were increasing at a worrisome pace. In short, we identified subtle signs which we believed would represent a new period of global economic risk and heightened volatility in the capital markets.

For several years we have been forecasting the various stock market corrections as a way for more active investors to add to their returns, all while emphasizing that the most important...