I was riding in my car and listening to Bloomberg radio this week when I heard an advertisement for a mutual fund that was investing only in growth companies in Africa, an Africa Only Fund. As investors we have options as to where to invest based on the growth opportunity and risk appetite we perceive. Like the majority of investors most of our assets are in safer, developed markets. Perhaps we allocate an amount to the “emerging markets” as we see growth opportunities, but for some investors emboldened for risk there are the “frontier markets”. Sounds a bit like the wild, wild west and if you take the time to read the disclaimers of risks associated with those markets you will see that they are in fact very risky. The ad for the frontier Africa fund got me thinking about which firm will be announcing a new investment fund following the Obama Cuba announcement for a Cuba Frontier Fund.
Me: “We’re going to be late, I’ll go start the car.”
Wife: “Be patient, we’re not going to be late.”
Or perhaps this conversation resonates with some of you:
Me: “When’s everyone going to get here? The invitation said 6:30!”
Wife; ” Be patient, it’s no big deal; no one arrives on time.”
The market is probably very glad that an impatient person like me isn’t the Chairman of the Fed Reserve. This week the statement by Fed Chairman Janet Yellen that the Fed would be “patient” in their raising of interest rates created the single biggest one day rally in the stock market since 2011. On Wednesday the Dow rose 288 points, and the S&P 500 went up 40 points, all because of her use of the word “patient”. The power of a single word uttered by the right person created hundreds of billions of dollars worth of value on Wednesday. This was followed by a Thursday market move of an additional 421 points on the Dow, and 48 points on the S&P 500. This prompted me to look at the dictionary definition of the word patient which is “to be able to accept or tolerate delays, problems, or suffering without becoming annoyed or anxious.” Chairman Yellen’s patient Fed was a nice gift for the market going into the holiday week.