“For every action, there is an equal and opposite reaction.” Isaac Newton The big, and perhaps most perplexing, question in fixed income land is: When will interest rates rise? Unfortunately, we broke our crystal ball a few months back and will have to rely on economic theory and a bit of physics to unwrap the […]
“A blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one selected by experts.” Burton Malkiel – A Random Walk Down Wall Street Whether they like it or not, every investment professional knows of the great dart-throwing chimp. The one that beats the experts […]
A Look at Negative Rates For as long as we can remember, zero was considered the lowest interest rates could go. Anyone espousing that they could go lower received as much attention as ‘flat earthers.’ Today, the impossibility of negative rates has become another myth that modern society has debunked. There is currently around $10 […]
“Only the wisest and stupidest of men never change.” Confucius Graham and Dodd (two rather wise men) once referred to fixed income investing as ‘the negative art’. This is because unlike equities, with bonds the maximum upside is ‘fixed’. And it is the investor’s job to focus on the risk of loss, the negative, and […]
Extra! Extra! Read All About It! | October 2016
“The man who reads nothing at all is better educated than the man who reads nothing but newspapers.” Thomas Jefferson Every day we are bombarded with a barrage of news, delivered to us at breakneck speed. In theory, all this access to information should leave us more informed and better equipped to make decisions. But […]