Even Warren Buffett Can’t Call the Bottom

Markets bounced back sharply last week, providing a much needed respite for equity investors. But, before we get too excited, we need to keep in mind that +20% rallies during bear markets are very common. In fact, the biggest up days in stock markets have historically occurred during major bear markets.

Diversification Performance Through the Panic

If you have been following financial markets, even casually since February, you would know that we are in the midst of one of the fastest and sharpest equity market drawdowns in history. Although it may feel like the financial world is on the brink of collapse, a recent article by Ben Carlson of A Wealth…

The Increased Liquidity of ETFs

In times of turbulence and uncertainty, liquidity is a prized possession in financial markets. One of the interesting features of the ETF vehicle is its ability to provide increased liquidity relative to the underlying positions they track. This article from David Nadig describes how when liquidity dries up in the bond market, ETFs are able…

Range

We’re often told that in order to be successful in business or sports, the key is specialization at a young age. The story of Tiger Woods and his path to becoming one of (if not the) greatest golfers of all time, confirms that beginning at a young age and specializing with a narrow focus is…

Why Bonds Should Be a Staple, No Matter Your Portfolio

With the recent volatility in financial markets, some investors are finally seeing the diversification benefit of holding fixed income in their portfolios alongside their riskier equity investments. In the current bull market – the longest one in history – it is easy to look at the allocation to bonds as nothing more than a drag…

Seeing Around Corners

Inflection points for a business or industry often appear as if they happen overnight and without warning. While these massive shifts seem to be random, Rita McGrath in her book “Seeing Around Corners” contends that there are a number of different ways that businesses can spot these inflection points and guard against becoming the next…