Economic expertise TAMRIS has valuable expertise in Economic analysis of global economies and expertise in the application of this knowledge for the management of risk and return. It has in the past provided economic and market analysis to up to up to twenty firms of advisors in the UK financial services market place. Most economic events, news and information should actually have very little relevance to the day to day management of most portfolios. When things are good, the news quite often points to things getting better and vice versa when things are bad. Buying on news would lead most the way of the herd. Most information therefore lends little value to the ability to generate short term return. On the other hand trying to determine the future from economic analysis, is also extremely difficult, especially so when short term returns are more often the result of sentiment than fundamentals. Major economic crises are also extremely difficult to predict.
TAMRIS views economic analysis as being key to monitoring the stage of the economic cycle relative to the valuation of the stock market. The biggest blows to most investors have rarely come from economic crises, rather buying too much at too high a price.  The biggest risks to investors therefore occur at advanced stock market and advanced economic cycles. Being able to assess the magnitude of these risks to investor’s financial security is considered important by TAMRIS. No market or market components should be allocated to without economic analysis and an understanding of the risks associated with this analysis. Additionally understanding the economic risks and the relationship between economic and market valuation is key to assessing the risks to long term return. Failure to understand these issues is one of the reasons why many investment advisors projected too optimistic a return at high market valuations and why many clients’ financial security is often seriously affected by significant market declines. Unfortunately too much economic analysis is merely used to support an organisation’s view. It is important, therefore, that all analysis is objective, critical and independent of an organisation’s sales and service objectives. |