|Profits not politics||Profits not politics||
Profits not Politics
One wayward tweet can send the markets spiraling in the short term, but RBA knows that in the long term, profits determine the direction of the markets, not politics.
|Duration = Risk||Duration = Risk||
Duration = Risk
Investors remain fixated on longer-duration bonds even as their risk increases. Duration is a measure of risk and myopically focusing on the long end of the curve while it appears to be significantly overvalued may prove fruitless.
|Be your portfolio's designated driver||Be your portfolio's designated driver||
Be your portfolio's designated driver
Investors have remained on the sidelines for most of this 10+ year bull market, yet FOMO is leading many to join the party late. In this late cycle environment, one should consider sobering up before the punch bowl is taken away.
|Doomed to repeat the Tech Bubble?||Doomed to repeat the Tech Bubble?||
Doomed to repeat the Tech Bubble?
Investors’ current enthusiasm for piling money into next great tech unicorn is ominously reminiscent of March 2000. Might we be doomed to repeat the Tech Bubble?
|You can lead a horse to water||You can lead a horse to water||
You can lead a horse to water, but you can't make it lend
The Fed’s constant balancing act between easing and tightening monetary policy is intended to influence banks’ lending habits, but as the old axiom goes; you can lead a horse to water, but you can’t make it lend.
|Year Ahead: 2019-Part II: Fundamentals Ultimately Rule||Year Ahead: 2019-Part II: Fundamentals Ultimately Rule||
Year Ahead: 2019-Part II: Fundamentals Ultimately Rule
We think it’s better to position our portfolios based on 2019 fundamentals than structuring them by looking backward at December 2018’s volatility.
|Year Ahead: 2019-Part I: High Anxiety?||Year Ahead: 2019-Part I: High Anxiety?||
Year Ahead: 2019-Part I: High Anxiety?
Public policy can be corporate-friendly or corporate-unfriendly. But what if it's corporate-uncertain? Then investors are faced with volatility. Part I of our Year Ahead investigates the current corporate-uncertain environment.
|Debt, Deficits, and Decay||Debt, Deficits, and Decay||
Debt, Deficits, and Decay
The US government's debt problem isn't new. It has been steadily growing for nearly 40 years, and growing interest expense has secularly weighed down domestic economic growth. Why has this happened and how do we fix it?
|The realities of diversification||The realities of diversification||
The realities of diversification
Most investors purchase insurance for their homes, vehicles and health, but rarely expand the practice to their investment portfolios. At RBA, we diversify our portfolios using negatively correlated asset classes, but just like insurance, it comes with a premium.
|Looking for risk in all the wrong places||Looking for risk in all the wrong places||
Looking for risk in all the wrong places
Investors seem overly concerned about equity market volatility, but ignore the growing risks in fixed-income and seem oblivious to the bonds’ already multi-year underperformance. One might say they are looking for risk in all the wrong places.