Three-legged stool
Episode one is presented by our director of research, Peter Ketchand, CFA®, MBA, and focuses on our “Three-Legged Stool” market model.
A three-legged stool will provide a very stable platform when all three legs are strong and supporting the seat. However, if one of the legs begins to become unstable, that can result in a loss of stability for the entire structure.
The seat of the stool ties the three legs together and gives a platform for support. For us, the seat is comprised of interest rates and inflation. Changes to the seat will impact each of the three legs. While this does not automatically mean that things will become unstable, it does require looking at how changes to the seat affect each of the three legs and vice versa.
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