Risk Management

July 27, 2021

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

For Illustrative Purposes Only 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 2000 (123% above trend). Every time market prices have risen greater than 44% above the trend, the S&P 500 […]
June 13, 2019

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 […]
June 4, 2019

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 […]
May 30, 2013
smart money

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 […]