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…
Tag: Economy
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…
Explaining the Disconnect Between the Economy and Stock Market
This week, the S&P 500 flirted with overtaking its high watermark from February of this year, leaving many scratching their head as to how, and why, the stock market has rebounded this quickly. Since the bottom in March, the S&P 500 has risen approximately 50 percent, taking only 175 days for the index to complete a…
The Benefits of Preparing for the Unknown
While many investors may define success for their investment portfolio from a return-centric perspective, arguably the more important factor to focus on is risk mitigation. Once you’ve defined a way to quantify the utility function inherent in a risk-centric framework, then return expectations can follow. Otherwise, the strategy is at risk of being abandoned when…