As the profit cycle matures, we are increasingly being asked how long-term investors should best position themselves should the economic backdrop and equity markets become more challenging.
Markets mark-to-market in the short term and are inefficient in the long run.
The impact from the compounding of cash flows outweighs the potential impact from valuations.
Consistent and stable cashflow growth is an important cushion to protect and preserve value through a downturn.
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