As is the case with timing the market as a whole, frequent recalculation of sector, style and country risk implies, I believe, a greater knowledge and certainty about how to measure these risks than actually exists. We prefer to stake out a long-term position that itself recognizes the limitations of our own foresight and to proceed humbly.
1The beta of a portfolio measures its sensitivity to market movements. A high beta suggests that a portfolio will exaggerate the movements of the market to both the upside and the downside.
The views and information discussed in this article are as of the date of publication, are subject to change and may not reflect the writers' current views. The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the portfolios or any securities or any sectors mentioned herein.
The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation. Matthews International Capital Management, LLC does not accept any liability for losses either direct or consequential caused by the use of this information.
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