The Fed’s Blindspot
I don’t say this often, but Fed Chairman Jerome Powell is wrong. Regular readers of our investor letters and other publications will recall that we regularly cite Chairman Powell as doing the best he can with the levers he has while arguing correctly for others to do their part.
History in the Making
So… who is right? Can we learn from history, as Santayana believes? Or has the past just set the table for what’s to come, as Shakespeare wrote? Is the future determined by the past, as Vonnegut argues? Or are the two unrelated, as the SEC requires fund managers to tell their prospective investors? We suggest that the answer to all of these questions is yes.
Now Is The Time To Buy Cheap, Not To Buy Everything
In 2019, the bull market thinking of fixed income investors argued for a more disciplined approach to risk and return. The markets today are facing very different circumstances, but are suffering from the same lack of risk management.
Negative Rates Explained: Your Bank, Your Currency, Your Future
Fed Funds futures are predicting that the Federal Reserve will lower their benchmark Fed Funds rate below zero by mid-2021. Will this really happen?
Robbing 2020 to Pay 2019: A Reality Check for Fixed Income
Fixed income markets are different from equity markets. This statement is absurdly self-evident when put into writing. But it’s not as obvious when put into the context of today’s market dynamics.
Can’t We All Just Get Along? Distinctions, Differences and Diversification
Like politics, investing philosophies are polarizing: be it a debate on active vs. passive or direct investments vs. funds. For fixed income, we lay out differences between indexed exposure to high yield and bank loans vs. fundamentally selected portfolios—and recognize there may be room for both in portfolios.
Advisors Find a Road Less Traveled in Fixed Income
There is a small but growing community of advisors who are leaving behind the old ways of picking managers in an effort to give their clients something they can’t get on their own or from a robo-advisor.