Despite relatively weak economic growth, low inflation, and a slow pace of private-sector borrowing, investors who are willing to revise their perspective from the short term to the longer term could find themselves in a better position to identify market risks and opportunities as we go into the second half of 2013. From the 2013 midyear outlook:
You can’t see what you’re not looking at. Investors have been so fixated on the Federal Reserve (Fed) and fiscal austerity that they are missing much of both the short- and long-term forces at work in the companies whose securities they are actually buying and selling. One force that investors haven’t overlooked is the radical transformation of the energy sector due to unconventional gas supplies—not just in the U.S. but around the world. This is slow-moving and shouldn’t be expected to play itself out over the course of six months. It provides one example of how simply changing your focus from the next hot thing to the more sustainable future and going from measuring success in months to gauging it in years could pay off over the long haul. Revising your perspective from the short to the long term can help you stay rational when markets get irrational.