market folly

Jonathan Ruffer is out with his Ruffer Investment Company Q3 letter with his latest market commentary.  Ruffer leads off with some prudent advice:

"Today's investment world is full of distortions, and the effect on investors is that they rationalise these fantasies, so that what is false is represented in their minds as true.  Prudent investors will want to reverse this process!"

The main distortion he is writing about currently is that quantitative easing has been effective at buying time and getting investors to pile into risk assets, but there hasn't been a return to long-term economic growth.

Ruffer believes that various entities around the world like the Federal Reserve are determined to stave off deflation.  As such, Ruffer believes that sooner or later they'll overdo it when it comes to money creation and we'll see inflation.  And this is how they continue to invest.

Embedded below is Ruffer's investment commentary for Q3:




For more from this investment firm, head to Ruffer on the 3 arrows of deflation.