The Paper Trail: An Expensive Free Lunch
As I publish this, I was supposed to be on a plane to Ft. Lauderdale for the Wealth Management EDGE/Inside ETFs conference. Unfortunately, Covid had other plans and I am now stuck at home. Seems like we're all destined to get our turn sooner or later...
Regardless, I wasn't about to allow a little Covid to interrupt my streak of (now) 23 consecutive monthly Paper Trail posts! So, without further ado...
The Paper Trail: Private Party
2021 was a banner year for private equity: new records in deal value and exits, the second-best fund-raising year ever, and a continuation of the strong returns that have outpaced other asset classes.
But can the party in private markets continue in 2022 and beyond? It's definitely a question worth examining with private markets likely to play a more substantial role in the portfolios of high-net-worth investors in the years to come.
In addition to private equity, this month's installment of The Paper Trail digs into:
- Litigation Finance
- Value in Japanese Equities
- The Upward Migration of ESG Ratings
- Information in Municipal Bond Yields
- The Momentum Factor's Woes
- And much, much more!
The Paper Trail: Rate Expectations
There's no sugar coating it - it's been a brutal start to the year for bonds. The Bloomberg U.S. Aggregate Bond Index is down nearly 7 percent year-to-date.
The conventional wisdom of building a balanced portfolio is being challenged before our very eyes. If there was ever an environment to demonstrate the value of diversifying your diversifiers, this is it.
The Paper Trail: Don't Say The "S" Word
This week was a reminder of how humbling markets can be. I don't think anyone went to bed Wednesday night after seeing the alerts on their phones about Russia's invasion and Dow futures being down ~800 points and thought stocks would finish in positive territory by Thursday's close. Nor did they think it would be followed by a strong rally on Friday going into the weekend. Investing is hard.
An investment strategy predicated on predictions and activity is almost certain to fall short over time to one based on preparation and temperament. And that is what The Paper Trail is all about - sharing valuable third-party insights with investors to help them prepare and improve their odds of long-term investment success.
The Paper Trail: Trending, Fast and Slow
There's an old Wall Street adage that says “as goes January, so goes the year.”
Like most market aphorisms, it sounds clever in theory but the results are mixed at best in practice. But if it does happen to ring true this year, we are in for one wild ride. All the more reason to seek ways to diversify and build durable portfolios!
The Paper Trail: Regime Change Resilience
As we inch closer towards the end of 2021, investors have largely been rewarded with treats rather than tricks. That said, the risk that markets gets spooked remains ever-present, as does the need to remain disciplined and seek portfolio resiliency in the absence of a crystal ball.
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