Good firms should perform regardless

Investors seem more than happy for the market to continue moving higher and the latest investor sentiment surveys indicate the bullishness among investors is now at levels not seen since 2007.

It is human nature to expect trends to continue but it appears too many investors have become too complacent with the trajectory of the market and this is further evidenced by the VIX now trading below 20; seemingly too low considering the uncertainties still surrounding both the economy and the market. There are however some certainties among this sea of questions. Over the past 18 months, we have seen the greatest ever incursion by the government into the capital markets. This participation has included investing in banking stocks, all but nationalising car manufacturing, as well as ke...