Insights & Commentary

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 […]

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 […]

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 […]

The Smart Money

Smart Money There are a number of structural reasons why we call movements in the High Yield Bond asset class the “Smart Money”. A key reason is liquidity. High Yield Bonds are much less liquid than stocks. Bonds are still traded over the counter, dealer to dealer based on a wide variety of inputs such as inventory, credit risk and […]

Here We Go Again

As we approach the end of the first quarter, stocks have once again delivered strong first quarter performance while negative headlines from Europe are reemerging. Is the stage is set for another April/May decline? Here is what we are watching at Anchor Capital. The Dow Jones Industrial Average is reaching new all time highs and media channels are counting down […]

Gaps In Thinking

For investors, 2012 was a year of endless waiting; waiting for a resolution to the U.S. fiscal cliff, progress on the European debt crisis, results of a polarizing U.S. election, a Chinese leadership transition, resolution to the Bush tax cut extensions, etc..etc..etc. Any one of these issues alone possessed enough economic significance to bring investor confidence to a halt, and […]

Searching for Santa

It seems every year around this time we hear about the Santa Claus Rally, a period of time when markets supposedly provide a bullish backdrop for stock investors. With just a few days left in the year I thought it might be interesting to test the Santa Claus rally assumption. Examining data over the past two decades shows the last […]

Surfing with Sharks

Original Commentary: December 14, 2007 Just north of Santa Cruz, California up Highway 1 there is a hidden gem for surfers. It’s an isolated beach with some nice rights (waves that break from right to left). It’s a steep wave that wraps into a bowl, breaking hard and hollow on big days. “Four Mile”, (creatively named due to it’s proximity […]

An Alternative View on High Yield Risk

The Federal Reserve announced the latest round of Quantitative Easing (QE III) last week. The consensus view is that this latest round of $85 Billion per-month bond buying will send all liquid assets higher. Investors responded by pouring fresh capital into High Yield Bonds driving prices to new highs on the year. In a climate where the Fed is promising […]

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