Questions I'm Asking {Also An Introduction}
I'm writing this post with the S&P 500 trading within a whisper of its all time highs, with bond yields at what at least seems to me as incomprehensibly low rates of return, a presidential race that at time has bordered on farcical and much of the textbooks on investing that have been used for so many years now seemingly out of date. The world has changed and in that changing world these are the questions I'm asking myself for my clients.
How do we invest in a world where all total rates of return on traditional asset classes have the potential to be lower over the next ten years than either historic assumptions would indicate?
How do we invest in a fixed income world at all? Especially if total returns turn negative if/when interest rates ever experience a significant rise from current levels?
What is the proper way to invest in equities when today's market place seems to be marked with heightened levels of volatility and lower liquidity? Are current valuations the new normal when considering the risk free return on bonds or an aberration?
How are the forces realigning the political spectrum all over the world going to play out for investors?
I know I could throw out more questions but these are at least some of the basics as far as I'm concerned. My thesis is that everything is changing from politics to investments. Today is just a teaser. We're going to explore this new world in a series of articles and papers. You've already been exposed to one of the principal ways we're going to talk about these changes in our series we've currently titled "The Long View". You can see two early examples of these articles here and here. These articles are more "big picture" stories. They will be were we attempt to bring attention to some of the underlying themes we see impacting the investment world. The other ways we're going to explore this new world is through a new series that will at least initially be titled VIEW: Variant Investing in an Evolving World. Here I hope to explore the more practical aspects of how we make sense of this new world and how to invest in it. I say the title is evolving because the world is changing at breakneck speed and I may find after a period of time that it doesn't adequately reflect what I'm trying to discuss. If that becomes the case then like our VIEW, it may have to change as well.
Stay tuned.....
*Long ETFs related to the S&P 500 in client and personal accounts. Please note these positions can change at any time.
How do we invest in a world where all total rates of return on traditional asset classes have the potential to be lower over the next ten years than either historic assumptions would indicate?
How do we invest in a fixed income world at all? Especially if total returns turn negative if/when interest rates ever experience a significant rise from current levels?
What is the proper way to invest in equities when today's market place seems to be marked with heightened levels of volatility and lower liquidity? Are current valuations the new normal when considering the risk free return on bonds or an aberration?
How are the forces realigning the political spectrum all over the world going to play out for investors?
I know I could throw out more questions but these are at least some of the basics as far as I'm concerned. My thesis is that everything is changing from politics to investments. Today is just a teaser. We're going to explore this new world in a series of articles and papers. You've already been exposed to one of the principal ways we're going to talk about these changes in our series we've currently titled "The Long View". You can see two early examples of these articles here and here. These articles are more "big picture" stories. They will be were we attempt to bring attention to some of the underlying themes we see impacting the investment world. The other ways we're going to explore this new world is through a new series that will at least initially be titled VIEW: Variant Investing in an Evolving World. Here I hope to explore the more practical aspects of how we make sense of this new world and how to invest in it. I say the title is evolving because the world is changing at breakneck speed and I may find after a period of time that it doesn't adequately reflect what I'm trying to discuss. If that becomes the case then like our VIEW, it may have to change as well.
Stay tuned.....
*Long ETFs related to the S&P 500 in client and personal accounts. Please note these positions can change at any time.
posted by CR English at 6:00 AM
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