Investment strategies

After an AI-propelled surge in equities this summer, the change in seasons has brought choppier conditions to financial markets. In Q3, attention shifted from stocks to bonds as concerns developed  about rising debt levels in major economies. Across developed markets, government bond yields reached their highest levels in well over a decade bringing the mark-the-market … [Read more...] about Rethinking Asset Allocation: What do higher bond yields mean for asset allocation?

“The ancient Greeks had a single word to express the condition of being “without a road,” when the way forward is not clear: aporia. It represents a moment pregnant with the arrival of something unlooked for” Mathew B Crawford, The Upside Of Risk … [Read more...] about The Capital Cyclops

The resilient US economy has led to an improved earnings outlook for US stocks, but many investors worry that valuations—represented by the forward price-to-earnings (P/E) ratio—are too expensive given the uncertainty surrounding interest rates and the economy. US stock valuations seem elevated relative to historical averages and to stocks in other regions of the world … [Read more...] about Are US stocks worth the price?

One of the things our process is designed to identify is unsustainable extremes we can exploit, particularly when investor behavior prices either too much optimism or pessimism into equity valuations. Right now, the market continues to confidently price in a soft economic landing and the continued dominance of US mega cap growth stocks. We believe this zealous optimism has … [Read more...] about Value can defuse concentration risk