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The Missing Piece in Your Portfolios Why You Need Risk Management

The Missing Piece in Your Portfolios
Why You Need Risk Management

The risk management gap: the biggest difference between institutions and retail investors. Adding more diversification doesn’t reduce risk. Adding the right kind of diversification does. For decades, advisors have been making portfolios more and more complex—adding new products and diversifying across more asset classes in hopes of improving returns and reducing risk. The exact opposite has happened: portfolios have become […]

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Risk levels are the highest in 140 years, are you prepared to Navigate What’s Next?

For Illustrative Purposes Only The Chart is from Regression to Trend: Another Look at Long-Term Market Performance (Advisor Perspectives) by Jill Mislinski, June 2021 As of May 2021 the S&P 500 price is 169% above its historical trend line, this is the highest level in 140 years. Last time prices were at a historic high was the dot com crash in […]

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Insight Center

Bear Market Road Map: What Happens Next

What Happens Next? Analysts, commentators, and managers are all taking turns making predictions about where financial markets will bottom. While modern markets have never faced a global health pandemic with the magnitude of COVID-19, history is filled with examples of unexpected headlines and “Black Swan” events that take analysts and investors by surprise. In fact, that’s how most Bear markets […]

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Could a Fed Rate Cut Be Bearish?

The next Federal Reserve Open Market Committee meeting is set for June 19, 2019. Based on the Bloomberg World Interest Rate Probability screen (WIRP), markets are pricing in a 20% chance for a rate cut next week, an 84% chance in July, and a more than 94% chance of a rate cut in September. Bloomberg WIRP as of 6.12.2019 Beware […]

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Peak Corporate Profits

The current rally that began in Q4 2016 has been fueled by earnings growth. Out of the eleven sectors that make up the S&P 500 index, Technology has been the standout momentum leader delivering nearly double the return of the broader S&P since the rally began. With 492 out of 500 S&P 500 companies reporting, first quarter 2019 earnings season […]

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What’s Next for Equities

Let’s Go Streaking. Let’s go all the way back to January when markets started off 2017 with a heavy dose of what we would describe as “Cautious Optimism“. Cautious about a new administration and untested leader in President Trump, but optimistic about a business friendly agenda in tax reform and healthcare. In February we published a research post highlighting rare […]

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What the Fed is Watching

(See Beware The Ides of March) While we pay close attention to WIRP, it’s not the only data point pointing towards higher interest rates. Strong Data Just about every Federal Reserve comment, whether written or spoken by a Federal Reserve Bank member, states that future decisions are “data dependent”. Taking them at their word, we see across the board that recent economic […]

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Bond Investors: Beware the Ides of March

Beware the Ides of March The Ides of March is a day on the Roman calendar that corresponds to March 15th, notorious as the date of the assassination of Julius Caesar in 44 BC. The death of Caesar made March 15th a turning point in Roman history, one of the key events that marked the transition from the historical period […]

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