In an increasingly uncertain world, people crave reassurance. Unfortunately those appearing to offer certainty and ‘science’ are in many cases fooling themselves along with their customers.

This post was originally set to go out on Friday, but we thought it worth digesting the narrative being created over the weekend after the ‘storming’ of the Capitol by Trump supporters.

Common Law – Everything is allowed, unless it is forbidden. Napoleonic/Justinian Law – Everything is forbidden, unless it is allowed.

The narrative over the last six months was seemingly almost entirely around the twin themes of Covid and the US Election and it looks like November will come in as a really strong month in Global Equities, principally because the risk premium around both of those has fallen.

Global Equities have finally clawed back their total returns relative to Global Bonds and while there is no sign of the theoretical risk free rate approaching the true cost of capital anytime soon, investors accepting nominal inflation are looking at some new nominal assets to reset their portfolios. We think of them as the 5Cs