Monthly Investment Updates
What you need to know
May Investor’s Note 2024
In this month’s note, we delve deeper into the S&P 500’s performance, particularly examining monthly declines of 5% or more. Moreover, we underscore one of the prime advantages of trend following: its capacity to guide investor behavior with a disciplined, repeatable approach that fosters rational decision-making amidst turbulent times. We firmly believe that this approach is the cornerstone of long-term wealth accumulation and is instrumental in helping our clients realize their financial aspirations.
April Investor’s Note 2024
In this month’s update, we encourage clients to embrace the present market environment rather than succumbing to worry. We reflect on the resilience of the S&P 500, poised for one of its best first-quarter performances in nearly a century, highlighting the importance of systematic investing. Our asset-level overview explores the robust performance of equities and real estate markets, alongside insights into fixed income and alternatives. Additionally, we analyze three potential catalysts for trend changes, including the Federal Reserve’s rate decisions and shifts in the mortgage-backed securities market. The editorial section delves into historical data, revealing intriguing patterns in the market’s performance, and emphasizes the significance of a systematic investment approach. Overall, we aim to provide clients with actionable insights while encouraging them to enjoy the current market momentum.
March Investment Update
Discover insights into recent market trends and investment opportunities in our latest March investment update. We explore the concept of “sins of omission” and stress the importance of reviewing missed opportunities while highlighting the value of employing systematic investment strategies to achieve financial goals. From equities and real estate to fixed income and alternatives, we analyze market movements and potential catalysts for trend changes, providing valuable insights for investors navigating today’s dynamic landscape.
February Investment Update 2024
In recent discussions with clients, the topic of “all-time highs” has arisen, often signaling potential market downturns. However, in January, the S&P 500 marked four all-time highs, breaking the previous peak from January 2022. This shift, though relatively brief, holds significance both psychologically and for long-term compounding potential after 512 days below the prior high.
Since 2013, the S&P 500 has reached 351 all-time highs, varying in frequency. This differs from the period from 1930 to 1953, which saw no new highs. Our trend-following analysis suggests that trends tend to persist, but we prepare for moments when “this time is different.” Dive into this further, click the button below to read the full note.
January Monthly Note 2024
In this month’s note, we discuss why predictions can be perilous territory, often leading to emotionally driven investment decisions only to justify them intellectually. Additionally, we share why we feel so strongly about flipping the order to start from the intellectual standpoint, which we believe means having a systematic and repeatable investment process.
December Monthly Note 2023
In this month’s update, we delve into the rollercoaster of investor sentiment mirrored in the S&P 500 movements this year. We also explore historical S&P 500 data, homing in on recovery timelines and offering perspective on the last 24 months.
November Monthly Note 2023
With just two more monthly updates remaining in 2023, we find ourselves reflecting on what has been a year marked by notable shifts in investor sentiment. It is worth noting that even we, as believers in systematic asset management, are not immune to human tendencies such as recency bias, and our perspective may also be shaped by recent events.
October Monthly Note 2023
In the world of investing, markets are in a constant state of flux, and even the most well-thought-out strategies can face tests. September provided a poignant example of this. In the previous month’s note, we discussed our risk handoff strategy and how it led to a shift in allocations from international equities to U.S. equities. While this strategy often proves rewarding as we seek stronger, positively trending markets, it’s essential to recognize that this isn’t always the case. The last thirty days of U.S. equity performance serve as a reminder of the challenges inherent in trend following.
Monthly Note September 2023
In this Monthly Note, we delve into a crucial aspect of achieving market outperformance. We shed light on how our systematic investment approach handles risk management, specifically, our strategy for easing out of weakening asset classes while avoiding a full “risk-off” stance. It’s all about circumventing the wall, not climbing it.
