I always like to study different asset allocation types and I thought readers might find this model portfolio from Goldman Sachs somewhat interesting:
SocGen: 3 Investment Themes to Consider in 2014
Just passing along some good macro thoughts from the SocGen Cross Asset Research team:
When Will Corporate Profit Margins Contract?
There are few signs of impending doom that are more widely cited than record high profit margins and the inevitable mean reversion that always comes following such an environment. It’s true. As you can see in the chart below profit margins have averaged about 6.5% over the last 65 years and every time they’ve gotten well above that 6.5% range they’ve come back to earth.
2014: Year of the Strong Dollar?
I found these comments from BlackRock pretty interesting with regards to the US Dollar’s potential performance in 2014:
Jeff Gundlach: “The Ultimate Pain Trade”
Jeff Gundlach has been laying out his view for 2014 in a presentation this afternoon. As you can likely guess, he’s not super bullish on equities given the huge rise [ … ]
Why Hasn’t the Shrinking Deficit Caused a Recession?
Evan Soltas asked a question that I find increasingly common in economic circles and also odd. He’s wondering why we should think fiscal policy matters if the budget deficit has [ … ]
Richard Bernstein: There is no Equity Market Bubble
Richard Bernstein joins the chorus of people on the side who say there is no equity market bubble. In his latest letter he says:
Economic Myth Busting – The Video Version
I joined Erin Ade on Boom Bust on RT TV this afternoon to discuss economic myths and hyperinflation. We covered a lot of ground in 10 minutes including the money multiplier, paying back government debt, the government’s debt constraint, hyperinflation and the “money printing” myth.
Common Myths About the Federal Reserve
Just an FYI here. I added a reference page in the “tools and resources” dropdown along with some other myth busting posts. This one covers some of the more popular myths about the Federal Reserve. If you can think of any I should add please let me know. Thanks.