Portfolio Management

Special Report on the Energy Industry December 14, 2017

Posted by Steven Vannelli, CFA in Economy, Markets, Portfolio Management

We expect momentum in the energy sector and resource-related currencies to continue into 2018. In this mid-quarter update to investors, we analyze what this means for the market. In summary: Oil prices are testing resistance, and if they can break out, there is significant upside. Oil…

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Cash is an Asset Class Again! November 30, 2017

Posted by Steven Vannelli, CFA in Economy, Markets, Portfolio Management

In a US Dollar bull market with interest rates at zero, cash is rightfully dismissed as a non-asset class. But, when the US Dollar is in a bear cycle, things change, irrespective of what US interest rates are. There are a handful of indicators we…

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The Fundamental Case for Japanese Stocks November 15, 2017

Posted by Bryce Coward, CFA in Markets, Portfolio Management

We’ve been arguing for the last year that US-based investors would be well served to overweight foreign versus domestic equities. In this post we’ll dig into that topic a little deeper to try to convey a few of the company specific fundamental drivers of our…

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Shifting Currents in the US Treasury Market October 03, 2017

Posted by Steven Vannelli, CFA in Markets, Portfolio Management

Employing basic bond math, we can decompose the US Treasury bond into two pieces: real rates and break-even inflation expectations. Because real rates (TIPS) and nominal rates (US Treasuries) are directly observable, break-even inflation is relatively easy to determine. Taking this logic one step further,…

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The Rally in Energy Isn’t a Fluke September 28, 2017

Posted by Bryce Coward, CFA in Markets, Portfolio Management

Since the middle of August the S&P 500 energy sector is up 11.5% compared to just 3% for the index as a whole. Many observers have chalked this outperformance up as a reaction to a deep oversold condition or a short covering bounce, but a…

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We’ve been talking at length recently about the attractiveness of foreign, cyclical stocks here, here, here, and here just over the last month. While foreign developed markets are attractive, emerging markets are especially attractive from a valuation perspective and are also benefiting from what we think is…

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Investing in Gold for RICs August 29, 2017

Posted by Steven Vannelli, CFA in Portfolio Management

For retail investors, there are a few vehicles for exposure to gold. The SPDR Gold ETF (GLD) and the iShares Gold ETF (IAU) are the biggest, lowest cost funds for retail investors. Below are charts of the GLD and the IAU, with price and USD…

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