Q4-22 – The New Normal Came in a Year Where There Was Nowhere to Hide
Fixed income, the traditional ballast of the portfolio, went from shock absorber to shock contributor. Over a decade of low-interest rates and low inflation left traditional fixed income vulnerable to a rise in interest rates.
Q3-22 – This Time Wasn't Different: Facing the Backlash of a Pandemic
The most infamous words in finance are: this time is different. These four simple words are uttered in almost every economic, business, and investing cycle to justify valuation or price largesse of the current “darling” of the investment world.
Q4-21 – Over in an Instant: 2021 A Year Well Spent Living in the Moment
For as long as the year 2020 seemed to last with a toxic cocktail of worsening news about the Coronavirus, rolling lockdowns, and a particularly contentious political season, the following year, 2021, seemed over in an instant. 2021 was truly a year of living in the moment.
Our second quarter letter was titled "Revenge of the Normal," appropriately describing market conditions that had transitioned from the COVID wall of worry to future growth expectations in a post-COVID world. If the second quarter was revenge of the normal, the third quarter could most aptly be described as "some more normal with a side of inflation."
The second quarter of 2021 had a "revenge of the normal" vibe reverberating through April, May, and June. Increased vaccinations brought many re-openings and a rally in capital markets. But as we know, everything can't be perfect. We are also seeing an uptick in the new Delta variant of COVID-19 and struggles with appropriate interest rate and inflation levels.
4Q-20 – A Historically Consequential Year Leads to a Year (Decade?) of Transition
2020 sure was a wild ride. A pandemic coupled with political turbulence led to unprecedented economic times. For a review of the impact of 2020's happenings and our outlook on the direction of capital markets