Chairperson Scott Dobbie introduced Michael Dee who is the Chief Executive of Harvesting Funds Management. Michael runs his company which handles investments for high net worth individuals out of his office in Mt. Eliza. He defines high net worth as those individuals with greater than $500,000 to invest. In his first year of operation Michael achieved a return of 26.3% return in a relatively flat but volatile market.
His presentation (a copy of which is attached) focussed on the US vs. China with the basic theme being the decline in the US and the resurfacing of China.
I am not going to repeat what’s covered in his presentation. I think it’s pretty self explanatory. He reinforced the point that the GFC was created by the US housing bubble. QE2 was put in place to stimulate the US economy and stock market but who benefited most: China. The USA is reinventing itself with debt. China will in the not too distant future become the true superpower!!
You cannot invest successfully in the market without fully analysing the geopolitical factors.
Michael certainly opened our eyes to the happenings in the world and how Australia (as well as Canada, S Africa and Some of South America) appear to be doing OK with their resources propping up the China machine. The crunch of world realignment is a reality it’s just a case of when!!
Following are slides from the presentation.