Stayin’ Alive

High-frequency trading firms were thrust into the public spotlight when Michael Lewis published his book Flash Boys in 2014. The arc of the book was that proprietary trading firms had invested heavily in technological infrastructure to increase the speed by which they received financial market trading and execution data.

How Commodities Can Give Your Portfolio a Fresh Start

The traditional 60/40 balanced portfolio is no stranger to coming under fire. Many pundits have decreed the death of the balanced portfolio, arguing that a low yield environment will prove insurmountable and bonds will no longer be able to provide necessary diversification for investor portfolios. This proclamation has yet to be proven correct, and in the investment management industry, being too early is the same thing as being wrong. That being said, is this time different?

The Investment Community is Underinvested in Commodities

The slow growth, disinflationary economic environment subsequent to the Global Financial Crisis has left investors under-invested in inflation-sensitive asset classes such as commodities. However, as this Bloomberg article points out, the investment community is beginning to take note.Commodities provide several notable benefits to portfolios:Should perform well during an inflationary cycleShould perform well during periods of…

The White Dragon Cometh

In Chinese mythology, the white dragon symbolizes death and rebirth. This analogy seems applicable for foreign investors in Chinese equity markets this year. The recent rout in Chinese equity markets has come as a shock to many market participants, especially considering the downdraft in risk is isolated (for now) to this geographical region. Source: Bloomberg…

Flying Too Close to the Sun

Many have heard the ancient Greek myth of Icarus, the boy who was granted the gift of flight by his father who crafted wings out of wax and feathers in order for the duo to escape the labyrinth to which they were confined. Icarus’s father had only one warning for his son and that was…

Monte Carlo Simulations: A Journey Down Many Paths

In a previous blog post by Viewpoint Investment Partners, Volatility, A Skewed Reality, Amin Haji, Manager, Research & Analytics, explored the probability of specific wealth targets being achieved over a 20-year period when comparing investments with similar annual returns but differing volatilities. To perform his analysis, he leveraged a simple but powerful tool: Monte Carlo…

When Data Talks Out of Both Sides of Its Mouth

Imagine that you are a clinical physician recommending a promising new drug that has been shown to reduce the risk of heart attack in at-risk patients. At the end of the year, you ask one of your attending physicians to build an Excel sheet breaking down the efficacy of the drug in your patients. Your attending…

ESG’s Internal Scorecard

Environmental, social, and governance (ESG) metrics for publicly traded companies has become one of the fastest growing movements in the investment management industry. The expectation is that companies who implement strong ESG metrics will become more profitable and valuable over time by improving the interests of society, which should provide investors in these companies with…

The Game Has Changed

It’s likely safe to classify 2020 as a year that has defied expectations and predictions. Led by COVID-19, the real economy and financial markets have felt the wrath of the pandemic. Since March however, there has been a disconnect between the stock market and “main street,” as the real economy continues to sputter while equity…

Is the 60/40 Portfolio Dead?

Over the last decade, there have been many proclamations that the traditional 60/40 portfolio is dead, mainly due to the fact that bonds were supposedly overvalued and yields couldn’t go any lower. This article from Ben Carlson highlights that while a 60/40 portfolio has delivered outstanding returns as a result of falling real interest rates…