Tactical Investment Strategy, March 2021
March 17, 2021 — As Covid-19 cases decline and economies reopen, the anticipation of continued economic growth and a renewed boost in consumption has caused a rapid rise in interest rates and increased volatility in equities. Markets have started to price in the risk of the Fed hiking rates sooner than expected in response to an overheating economy. We believe this repricing is mostly done for the near-term, but rates remain vulnerable to additional shocks from further fiscal spending and upside surprises to inflation. The big picture is rates are rising because fundamentals are strong, which keeps us tilted toward risk assets and overweight equities vs. fixed income. We also favor higher-yielding, less interest rate-sensitive fixed income sectors and value-oriented equities.
Fixed Income Perspectives — March 2021
March 10, 2021 -- We are still in the early expansion phase of the recovery, and as Covid-19 cases continue to decline and the . . .
Are Disasters Really Natural? Insights from a Disasterologist
Many questions are still unanswered following Winter Storm Uri, which left millions of Texans without power and water for days. Could this disaster have been. . . .
Should Bond Investors Be Worried About Inflation?
Inflation is a bond investor’s worst enemy. Higher costs erode the purchasing power of a bond’s future cash flows, which pushes bond yields higher as investors demand more . . .