Weekly Client Letter

The longstanding image of U.S. government bonds as an unshakable cornerstone in investment portfolios is under strain due to recent market developments. The Federal Reserve’s assertive tightening policies, combined with significant government bond issuances to cover expanding deficits, have resulted in unprecedented declines in long-term Treasuries. This shift was further emphasized when Fed Chairman Jerome

Higher interest rates are poised to pose a significant challenge to the high-grade investment-grade bond market, particularly those sensitive to interest rate changes. Looking at the Bloomberg U.S. Bond Index (AGG), which encompasses investment-grade corporate bonds and treasuries, it’s evident that the past year was far from smooth sailing. The most substantial drawdown the index

Simple Moving Averages (SMA) are common tools for traders and market analysts when it comes to gauging long-term market trends. In light of recent market turbulence, the S&P 500 has been approaching its 200-Day Moving Average, a level often regarded as a support point. Remarkably, the index has remained above this threshold for an impressive

2022 served as a stark reminder of the challenges inherent in traditional fixed-income investments. The dramatic double-digit declines experienced by treasuries and investment-grade bonds raised concerns, particularly for those who consider these assets as reliable safe-havens. This left investors with few options because while viable alternatives like private debt have long been available, access to

The Federal Reserve made headlines this week with its decision to keep interest rates steady, hinting at the possibility of one more rate hike later this year. It was a slightly more hawkish stance than what the market had expected, especially in the context of the “high-for-longer” narrative. The idea of “higher-for-longer” interest rates raises

It seems that the Fed might be nearing the end of its tightening cycle-or perhaps it’s already there. The latest inflation report raised a few eyebrows, coming in a bit higher than expected. However, it didn’t exactly rock the boat, and most investors seem to believe that Fed Chair Jerome Powell will maintain the status

If you were to guess whether the S&P 500 was up, down, or flat from two years ago today, what would you guess? Many might be surprised to find out that it is flat! It might be hard to believe because from what we observe day to day, the market has been on a wild

In the current phase of the Fed’s rate hike cycle, interest rates are hitting levels not seen in a decade, with cash yielding a solid 5%. It might seem enticing to park your investments in cash, especially given the lofty valuations in riskier assets. However, history teaches us a valuable lesson – veering away from