A historical perspective, particularly examining past policy missteps, can offer valuable insights as we navigate this uncertain economic landscape.
Market Memo
Insight
Over the last couple of years, small talk has gone from, “What do you think of this weather?” to “Can you believe how expensive groceries are?” or “Can you believe mortgage rates are 7%?” We humans are myopic and expect the future to be somewhat similar to the recent past.
Market Memo
Insight
I wrote about the Government’s budget deficit in August of last year. (You Can Read It Here) I believe the deficit issues facing many countries will determine the direction of global asset prices, particularly bonds. I don’t foresee the ballooning of debt and deficits being an issue this year, but it will be a major issue in the near future.
Market Memo
Insight
In my last memo (read it here), I described the asymmetrical nature of market returns this year. This year has been one of the most difficult years for a diversified portfolio. When comparing a portfolio to a benchmark, the key is to choose an appropriate benchmark that represents and has a similar allocation to the portfolio being analyzed. Most investors naively choose to compare their portfolio to the S&P 500.
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