With the euro sliding deeper against the dollar this week, equity investors have been getting nervous. But why is everyone so surprised when known currency fluctuations derail earnings? In our view, a sharper focus on company exposures can help create a “natural” currency hedge in global equity portfolios.
I had been meaning to follow up after last week’s Z.1 report came out and it totally slipped my mind. It is, in my view, one of the most important documents the government releases. Which is funny because it doesn’t get much attention. Anyway, here are some general takeaways: The government’s deficit continues to contribute… Read More
My recent Three Things post on market efficiency caused quite a stir in my email inbox. For instance, someone writes in: “Fama and the EMHers are being proven right by the financial markets. As the latest SPIVA report showed, active managers cannot beat the market consistently. This proves that the market is more efficient than… Read More
1) The Fed is out of Patience. The Federal Reserve dropped the word “patience” from their most recent statement. Yes, that’s right – we now parse every line of the statement so closely that the removal of a single word is big news. The bottom line is that the Fed has set the table for… Read More
The Federal Reserve is, without a doubt, one of the most controversial entities in the world. This is always a strange notion for me because, at its most basic level, the Federal Reserve is actually a very boring entity. It is, for all practical purposes, just a big clearinghouse where banks have deposits that they settle… Read More