Justin Urquhart Stewart: Mr Market - 70 and still going strong

'Best analogy in finance'

clock • 4 min read

Times may have changed since Ben Graham first introduced 'Mr Market' to the world in 1949 but, writes Justin Urquhart Stewart, the analogy has aged rather well

Imagine you own a small business, along with a partner - Mr Market. Your working relationship is unusual, to say the least. Every day, Mr Market walks in and tells you how much he thinks your share of the firm is worth. He then gives you a chance to buy more of the business, or to sell some of your shares. You can choose to buy, sell or do nothing. Once you give him an answer, Mr Market clocks off for the day. There are other odd things about Mr Market. First, he is a creature of habit. He does not care what you do - buy, sell or do nothing and he will still come back tomorrow, name a pr...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Multi-Asset

MPS Watchlist: Helping advisers navigate the sector

MPS Watchlist: Helping advisers navigate the sector

Professional Adviser analyses what Consumer Duty means for MPS

Professional Adviser
clock 16 February 2024 • 1 min read
Partner Insight: Combining strategic and dynamic asset allocation to deliver better outcomes for your clients

Partner Insight: Combining strategic and dynamic asset allocation to deliver better outcomes for your clients

Tara Jameson, Co-Manager of the Schroder Global Multi-Asset Portfolios
clock 08 November 2023 • 8 min read
Partner Insight: How interest rate moves drive bond returns

Partner Insight: How interest rate moves drive bond returns

Markets might have got their interest rate outlook wrong, but the case for holding global bonds as part of a multi-asset portfolio remains as strong as ever.