Blog

Category: Investing

Inflation! Deflation! Two words that strike fear into the hearts of investors. Are such fears justified? Let’s take a look… If we segment calendar year changes in the Consumer Price Index (CPI) into quintiles, we observe the following: The lowest equity returns have occurred in deflationary (quintile 1) and inflationary (quintile 5) environments. The highest […]

When Stocks and Bonds Go Down Together

High on the list of the greatest fears among investors is a scenario in which stocks and bonds go down together. Last week those fears were realized when the S&P 500 (SPY) suffered its worst week since January 2016 while long-term Treasury bonds (TLT) also declined. Source Data: Pension Partners, YCharts This was an unusual […]

2017: The Year in Charts

These are the charts and themes that tell the story of 2017… I. The Year Volatility Died There’s an old saying that goes something like this: “the market has a tendency to move in a fashion that inflicts the most pain on the most participants.” After the election in November 2016, the most prominent market […]

Is Gold Really the Best Inflation Hedge?

“Gold is the best hedge against inflation.” – Pundit There’s not a week that goes by where we don’t hear one pundit or another promoting Gold as a valiant protector against inflation… Inflation is coming, we are told, and when it does you better own Gold. Sounds wonderful in theory, but what does the evidence […]

  • Posted in Gold, Investing, Myths
  • Comments Off on Is Gold Really the Best Inflation Hedge?

Junk Bond Myths

What are high yield bonds? I don’t mean the textbook definition (corporate bonds with a credit rating below BBB), but how they actually behave in terms of risk and return. In attempting to answer this question, let’s address some common myths surrounding the asset class affectionately known as “junk bonds.” Myth #1: High Yield Bonds […]