July 24 this year the S&P 500 traded around 4600. At the time, gains were almost 20% for the year. The bulls had all the momentum and analysts were ratcheting up their end of year forecasts. Some felt 20% YTD gains were not enough – calling for even greater upside. What happened? Stocks corrected around 10% offering investors a better opportunity. The game of near-term forecasting is a fool’s errand…
"Investing Lessons"
4 Ways to Invest in Bonds
If you’ve been following my posts the past few weeks – I’ve suggested it’s a good time to start increasing your exposure to bonds. As part of these missives – I’ve also had many reader emails asking me how? This missive will offer you a guide on some of the simple ways you can increase your exposure to fixed income. But let me offer a caveat… bonds are not risk free (nothing is)
Bifurcated Markets Usually End the Same Way
If you’re long the market – it was another rough week. My portfolio was no exception. My largest position (Google) was smoked – losing around 10%. The Index is now only up 7.24% for the year…. a long way from almost 20% higher in June. The next hurdle for the market comes next week – when we get payrolls. A soft print might give the market hope the Fed is almost done. However, if it comes in hot, the Fed may have no other choice but to hike again in December… given the uncomfortably high Core PCE last week.
Rethinking Asset Allocation
Last week we were treated to another thought provoking memo from Howard Marks. Apart from Warren Buffett and Stan Druckenmiller – very few investment managers boast a better 40+ year record than Marks. These investing legends rarely speak. But when they do – pay close attention. Marks’ note was follow-up to his previous memo titled “Sea Change”. Here’s the TL;DR: investors need to re-think their longer-term investment strategies. He is of the view the next decade (or more) won’t be the same as the last. A rising tide is unlikely to lift all boats. However, this also brings meaningful new opportunities for double-digit returns. We just need to start looking in different ‘pockets’.
For a full list of posts from 2017…