So long as one did not carry too substantial an amount of interest rate risk in portfolios, markets provided a solid foundation for generally positive returns over the past quarter and year. While fixed income returns have yet to register the now higher yields on offer (recall that yields up = price down in bonds), […]
While it’s understandable that investors may get excited about future prospects of new industries and business models, that enthusiasm may need to be tempered when it comes to the associated investment cases. Early investors may see substantial gains from the immense risks they took on when potentially grand success was merely imagined. But even later […]
It’s not rare that we sit scratching our heads at obvious contradictions expressed by investment markets. But that generally is not because obviously opposing opinions are surprising. After all, any individual trade requires that the buyer and seller have opposite opinions on whether to hold a particular security. That’s not a paradox…it’s a market. But […]
Over the four-plus decades since Americans last braced against a high-inflation environment, investors have seen interest rates sink to fresh lows and rise to lower peaks with each successive economic cycle. Rates are well off recent depths on account of ongoing efforts to ease upward price pressures, bringing positive and negative impacts along with: Listen […]
The failures of Silicon Valley Bank and Signature Bank over the weekend brought to life the notion that the Federal Reserve’s efforts to combat inflation would have knock-on effects for investment scenarios that had been dependent on a lower interest rate environment. But the Fed, along with the U.S. Treasury, took quick action to ensure […]
In recent months we’ve sought to highlight the notion that investment markets are forward-looking, meaning that they tend to reflect aggregate investor views as to where global economies and the countries and companies that operate within them are heading, rather than where they’ve been. But what does that mean, exactly? Another Look at Inflation Where […]
