In the investment world, three-year performance numbers are, rightly or wrongly, seen as the yardstick for funds to be measured by. In September 2011, however, the three-year anniversary is one of the unravelling of the US financial system and the collapse of Lehman Brothers – hardly cause for celebration, except maybe to thank your God that you are still in business.
A similar lack of celebration would be around the third anniversary of Bank of America buying Merrill Lynch; AIG’s bail out; and Freddie Mac and Fannie Mae becoming State owned.
A fourth anniversary, putting us in September 2007, is of Northern Rock’s demise, and the iconic photos of customers queuing around the block to get their hands on their hard-earned savings.
Bearing this in mind, thanks go to Axa IM’s Chris Iggo and in turn to Mark Benstead, for this anecdote:
“At noon on September 16, 1920, a horse drawn buggy loaded with 100 pounds of dynamite and 500 pounds of cast- iron slugs exploded across the street from the JP Morgan bank headquarters in downtown Manhattan, New York.
“The explosion blew out windows for blocks around, killed 30 immediately, injured hundreds of others and completely destroyed the interior of the Morgan building. Those responsible were never found, but evidence – in the form of a warning note received at a nearby office building – suggested anarchists.”
So maybe being in business in September 2011 and able to invest in October 2011 is reason enough to celebrate.
