In a recent post I reviewed how asset allocation is a reliable tool for earning average to above-average returns (with average or below-average risk) for a given opportunity set. Let’s extend the concept with a real-world test of three more market slices: US fixed income, US equity sectors and US equity risk factors.
* US will impose new, deeper sanctions on Russia
* Planned US troop pullout leaves Afghanistan with uncertain future
* 100-plus companies sign letter opposing US state voting restrictions
* Wall St banks report earnings growth and anticipate strong economic recovery
* Hedge funds post best year-to-date results in over a decade
* What happens when US economy’s stimulus high wears off?
* Fed will reduce bond purchases ‘well before’ raising rates, says Powell
* Fed Beige Book: US economic activity accelerated since February
* US 10-year Treasury yield holds steady for 2nd day, near 3-week low:
In this issue:
- Is the bond market rout over?
- Is a renaissance brewing for European equities?
Headline inflation rose sharply in March. The bond market yawned.
* Biden today will announce US military troops will leave Afghanistan by Sep. 11
* US and NATO signal strong support for Ukraine after Russian troop buildup
* China conducts military drills near Taiwan ahead U.S. officials visit in Taipei
* IRS chief: $1 trillion in taxes may go uncollected every year
* World dependency on fossil fuels expected to rise in years ahead
* US small business sentiment edged higher in March but remains middling
* Money managers focused on ‘make or break’ inflation outlook
* US headline 1-year consumer inflation accelerated sharply in March:
Every investment strategy has its own particular set of pros and cons. Do you know how your strategy’s profile stacks up? As a reference point, consider an unmanaged, market-weighted asset allocation strategy.
* Russia warns US warships to steer clear of Crimea
* Japan plans to release contaminated water from nuclear plant into sea
* Will Treasury auctions and inflation data end recent lull in the bond market?
* US inflation data for next few months will bounce but it could be misleading
* China int’l trade activity rebounds sharply as global economy recovers
* Banks on track for profit boost as economy rebounds
* UK economy rebounded in February
* New US Covid-19 cases continue to hint at possibility of fourth wave
* US federal deficit deepens to $660 billion in wake of stimulus checks:
* Iran blames Israel for sabotage incident at key nuclear power plant
* Iran vows to ‘take revenge’ for attack on nuclear site
* Sec. of State Blinken has ‘real concerns’ re: Russia’s actions on Ukraine border
* Frenzy of lobbying begins over Biden’s $2 trillion infrastructure and jobs plan
* Covid variant evades some of the protection of the Pfizer-BioNTech vaccine
* Fed’s Powell: US economy at ‘inflection point’ as growth expected to accelerate
* Does accelerating economic growth raise inflation risk?
* Bitcoin trades near record high as largest crypto set to go public
* US financial-system stress remains low in early April:
Keeping up with the benchmark remains challenging for our proprietary strategies this year. Beta, in other words, is still red hot at the start of the third quarter.