Bonds don’t always diversify equity risk

With global bond yields back near the low end of recent ranges, it’s an opportune time to revisit a theme that’s relevant to portfolio construction today – the bond vs. equity correlation.

Read More

How to profit from interest rate volatility

One way to profit from interest rate volatility is to get directional calls right, ahead of a large move in rates. Sadly, we have yet to come across anyone who has been able to consistently get these directional calls right.

Read More

Why do you pay attention to financial forecasts?

It’s that time of year when inboxes get flooded with 2019 economic and financial market forecasts. As the CFA institute points out, at the beginning of 2018 the median analyst forecast for the S&P 500 calendar year return was +10.3%. The actual result ended up being -6.2%.

Read More

The central bank bar tab

A primary focus for global financial markets in Q4 2018 was the growing fear that the FED has tightened monetary policy too far, too fast and risks tipping the US economy into recession. This culminated in a severe global equity sell-off, which accelerated after the December FED meeting.

Read More