“Yet that raises the question – did something change in the Great Financial Crisis, or is this just a pause in the strategy’s long-term outperformance?”
“And another straw in the wind may be the performance of a newly issued junk bond of a company called WeWork who have invented an entirely new, nonsense valuation metric – ‘community-based EBITDA’!”
“…it’s not like you have to dig deep to find a problem.”
That’s one “very cool” holding pattern.
“The strategy almost looks foolproof on paper. Yet like most things in the markets, nothing lasts forever.”
The bottom line (or at least from where I’m sitting), is this…
“Slim margin”of error for Goldilocks.
Listen…
It was only fitting that the quarter should close in dramatic fashion for U.S. equities.
“Enjoy those chocolates.”
“The single most important price in all of capitalism is the interest rate—-and at all points on the maturity curve. And the single most important truth about honest interest rates is that they must be discovered by markets, not imposed by the state.”
It should be fine. Really.
“This seemingly counterintuitive result has a distinct ‘path-dependent’ flavor.”
“In the last week of January, as equities went on yet another run, a client who had been waiting to buy the dip called us with an exasperated query.”
“Tremendous” things are happening.