Very Interesting commentary from these two funds.
They both blame Easy Fed policies. While Marketfield manager believe inflation will make situation worse for less affluent, Appleseed managers are very dire in predictions:
1. We expect to see higher tax rates on high income earners and higher tax rates on capital gains, gifts, estates, and
2. Trade protectionism should rise, so that demand from U.S. consumers can be more easily served by domestic
3. With stronger trade protections in place, the labor movement could experience a resurgence in the U.S.
4. The financial sector likely will decline as a percentage of GDP, driven by higher interest rates and structural
5. The dollar likely will be devalued further in order to reduce the burden of debtors.
6. Legislation likely will be passed and executive orders likely will be issued which would make it easier for
consumers to restructure their household debts.
7. As the Federal government spends more money to protect the poor and service debt, spending in other areas will
likely be cut. "
Appleseed - "We are similarly underweight companies that market consumer
discretionary products to high income consumers."
Marketfield -Those that have catered to luxury class, have done super well. They don't say if they believe it will continue.
FWIW, don't count out the luxury class. It is inconceivable that they would allow their taxes to go up because of "lazy" people.https://www.nylinvestments.com/public_files/MainStay/PDF/Marketfield/Marketfield_Commentary_September_13.pdf
Appleseed Shareholder Letter, 10/25/2013http://www.appleseedfund.com/files/documents/2013 end of year letter final.pdf