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Saber Rattling

Sigma Investment Counselors

March 9, 2018

According to Wikipedia, saber rattling originated in Chile in 1924, when a group of young military officers protested against the political class and postponement of social measures by rattling the scabbards of their sabers against the floor.

The term is now applied to cover any indication of military aggressiveness.

Saber rattling currently can include such government actions as, strategically timed military exercises, weapons parades, weapon tests and bellicose speeches.

Investors should be aware that there is a lot of saber rattling going on currently, in North Korea, Russia, China and the US, to mention some of the larger players.

Markets, which often over react in the near term, are prone to rapid, and some times, material short term moves, as traders attempt to anticipate market action.  Investors should consider that attempting to react to inherently short term considerations is not a strategically sound response and may be detrimental to long term investment goals.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA

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