Here in the summer months, markets have reacted negatively to the global increase in cases of the Delta variant and the challenges in getting larger swaths of the US population vaccinated against the virus. The market sold off swiftly last week only to recover the losses over the last few days. Newspaper headlines couldn’t resist Read More
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From the Trading Desk: Commodities’ Inflationary Outlook
Uncertainty and fear of higher-than-expected inflation have been on investors’ minds for the past few weeks. Last week it was announced that the Consumer Price Index (CPI) rose more than 5% year over year, amounting to its biggest increase since 2008. Stocks in the U.S. did not respond in line with CPI figures however, considering Read More
Beware the Noise
Behavioral economics has taken on greater importance by investors in recent years but has been an edge exploited by systematic investors for decades. The founders of behavioral economic theory, Daniel Kahneman and Amos Tversky, identified biases we all possess as part of the human condition. We are often asked for examples of such biases. One Read More
Leverage the Process
One day history will be written surrounding the pandemic and the financial markets, for now, the story is still unfolding. A recent Wall Street Journal article reminded me that not all is rosy despite the all-time highs in the markets today. Many of those affected by the pandemic have given up getting rich in the markets and Read More
View from Crystal Bay: “Cash is Trash” What About Bonds?
Ray Dalio is the founder and Chief Investment Officer of Bridgewater Associates, the world’s largest macro hedge fund with $150 billion in assets under management. His investment letters are treasures that are passed around the investment community and read with avid interest. The latest one (https://www.bridgewater.com/research-and-insights/why-in-the-world-would-you-own-bonds-when) came out on Monday, March 15, and it’s a Read More