On Balance
As a slowing July Market looks towards August with a few concerns about overvaluation and falling momentum, we remain relatively unfazed. Our portfolios are consolidating from a good first half so we will be looking towards our mid-August rebalance with interest.
After last week’s discussion of Unknown Knowns, we update our findings and revisit the idea of how dynamically risk managing the portfolio’s exposure to underlying market risk can provide a more stable, compounding approach to investment returns.
Investment decisions are not just about Risk and Return – they are aboutindentifying the risks you DO NOT NEED TO TAKE. A focus upon the least appreciated of the Rumsfeld identities _Unknown Knowns – helps to shape our perception of the investment biases we do not need to follow if we want to maximise wealth.
After our latest portfolio rebalances we take a look at the “Weather” ahead
According to Edwin Starr, absolutely nothing, but shareholders of BAE Systems and other European defence stocks might beg to differ as the chart below shows.
Setting up for the summer. As markets review how they survived the turmoil of the Spring, thoughts turn to summer…
Portfolio construction needs to be about both a managed process of risk and return – not about multiple risks and multiple returns
There should be a better conversation about how to manage both risk and reward in equity markets.
One reason that we call this report “The Weather report” is that the analogies with multiple elements of Value, Momentum and Uncertainty impacting markets in a continuous way chimes with the idea of Currents, Tides and Winds, all impacting the navigation of the high seas. Whatever the nature of the vessel concerned or the skills, experience […]
Reporting on what has been going on and why is one thing. Knowing what to do about it and when is another altogether.