Lessons from Fiscal Year 2017 Results Diversified investors are noticing quite a difference in 2017 fiscal year performance—and it’s a welcome change. In the midst of an extended US equity market, and with returns that many diversified investors have found hard to swallow over the last few years, the turnaround in annual performance for what […]
October 2017
The strong Atlantic hurricane season and Mexican earthquakes have resulted in a tragic loss of life and property. Insurance-linked securities (ILS), meanwhile, have suffered a less dramatic impact.
October 2017
Policy benchmarking is a critical component of building and managing a successful investment program. In this paper we set out our comprehensive benchmarking framework and then zero in on the policy benchmark as the primary reference point for evaluating investment decisions.
September 2017
Not in our opinion. Recent market leadership by the so-called FAAMG stocks is not extraordinary relative to history, and their valuations and fundamentals, combined with this year’s relatively healthy market breadth, mean that they don’t necessarily present an outsized threat at this time.
August 2017
Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. We are not ready to pronounce the strong dollar cycle dead, but do admit the US dollar is in critical condition. Investors should remain partially unhedged or prepared to ride out a period of currency volatility. […]
August 2017
Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. Prospects for a continued turn in the cycle look promising. US outperformance relative to other developed markets peaked in November 2016, as the chart below shows, raising the prospect that the cycle has indeed turned. US […]
July 2017
This quarter’s edition covers the very overvalued US equity market, reviewing what late cycle looks like in the US and casting a critical eye at the consensus view of an overly concentrated market. Also discussed are the better prospects for ex US markets and the importance of remaining diversified.
July 2017
Since 2009, US equities have outperformed every major asset class by a considerable margin, returning 14.5% a year on average. And, over the same period, a simple 70% US equity/30% bond portfolio* returned 11.4% per year, on average. These kinds of results can tempt even the savviest investors into abandoning their long-term discipline and chasing […]
June 2017