If you follow the financial markets, you have most likely seen the "I" word recently - inflation. Although benign since 2008, inflation is on the "risk radar" of many asset managers heading into 2018. Some asset managers believe that higher inflation may cause the FED to raise rates faster than expected, which should cause bond … Continue reading Investing Trends – Commodities
Take a look at the following chart*, which was published in a book I am reading called "Adaptive Markets" by Andrew Lo. Based on the performance you see here, if you were to invest your entire life savings into one of these investment vehicles today (at the end of each line), which one would you … Continue reading Low Risk, Great Returns
Most people are unfamiliar with the investing term "carry". Carry is simply the cost or benefit of owning an asset. Bonds have a "positive carry" since they give you periodic coupon payments. All things being equal, bonds pay you to own them. An asset like crude oil may have a negative carry if you include … Continue reading What’s Your Carry?
Our firm recently lost a client. When we lose a client, which happens from time to time, we always reach out to that client to thank them for their business and ask why they left. This particular client had a family friend who is a financial advisor and the client wanted to consolidate accounts with … Continue reading Lost Client, Lost Upside
Most people know that stock markets across the globe had a great year in 2017. Few people take the time to review what didn't work in the past year. This chart from Deutsche Bank helps us visualize the returns (in US dollars) of various asset classes across the globe. Personally, my "invest-able" asset classes are … Continue reading The Worst Asset Class in 2017