Real Interest Rates: A “Perfect Storm” for Fixed Income Investors

Driven largely by the lack of real interest rates, bond investors are faced with a “Perfect Storm,” resulting in historically low interest rates with real interest rates explaining the largest part of the problem. This paper will discuss this environment.

It’s Money Supply not Interest Rates

There are two popular views regarding the economy and monetary policy. One is that the U.S. economy is on the edge of tipping into recession. The second is that with interest rates so low, the Federal Reserve (FED) does not have the ability to stimulate the economy.

ESG Investing

In this article, we show returns for portfolios comprised of high-ESG scoring companies. More importantly, we use attribution analysis to show contributions from sector, industry, and stock selection within these portfolios.

Recovery Rallies

Soon after the market bottom of March 2009, we stated that the sharp week-long market drop in October 2008 resembled the market “crash” of October 1987.

Bank Profitability and Interest Rates

Contrary to more common opinions, we believe that Financials stocks’ profitability can be independent of interest rates, even in low rate environments.

Deficiencies of P/E in Predicting Returns

Throughout the nearly eight-year stock market advance from the recession low of March 2009 through the record highs of March 2017, we have seen some analysts caution investors with regard to owning stocks.

Limited Resources How Passive Investing Interferes with Our Free Market System

Each country has to decide how to allocate its resources; land, labor and capital. Given these resources are limited, they are precious and need to be allocated in an efficient manner.

FINALLY! A money manager classification system that sorts managers by their investment strategy.

With some input and urging from me, and a lot of research on his own, Tom Howard Ph. D. of AthenaInvest developed a system to classify money managers by strategy.

The Federal Reserve & Money Supply

The Federal Reserve (FED) was formed in 1913 by Congress as an independent government agency, with the intention that it would be free from political pressures.

Value Oriented Bond Management

Equity investors can be categorized into a broad range of equity strategies, including valuation-based approaches, whereas bond investors generally think in terms of interest rates and duration management.