Beyond Bulls & Bears

First-Quarter Hedge-Fund Strategy Outlook: K2 Advisors
Alternatives

First-Quarter Hedge-Fund Strategy Outlook: K2 Advisors

Since the US election, markets have confidently placed their bets squarely on hope, and essentially little else. Is this level of hope (optimism) rational? It certainly seems like a lot to expect. But truth is indeed often stranger than fiction, and even the most gifted of storytellers would likely never imagine a more fantastic yarn than the reality of this election cycle.

Helicopter Money: Pulling a Brick with a Rubber Band
Alternatives

Helicopter Money: Pulling a Brick with a Rubber Band

Helicopter money may be an interesting theoretical idea and fun mental exercise in hypotheticals for economists to engage in, but in my humble opinion that is where it needs to stay—in theory.

Fourth-Quarter Hedge Fund Strategy Outlook: K2 Advisors
Alternatives

Fourth-Quarter Hedge Fund Strategy Outlook: K2 Advisors

We expect overall volatility to increase across the global markets, and often emerging markets are more volatile than their developed counterparts. With this volatility we anticipate the arrival of opportunity, and we believe it will likely be manifest across all three major asset classes—equity, fixed income and currency.

Thin Slicing the Markets: Has “Helicopter Money” Already Landed?
Perspectives

Thin Slicing the Markets: Has “Helicopter Money” Already Landed?

While in theory, the QE 'experiments' implemented post-2008 were intended to be temporary, I believe that in reality the expectation is that central banks around the world have no intention of ever unwinding the extra liquidity they have created.

Politics, Policies and Market Resiliency
Alternatives

Politics, Policies and Market Resiliency

If there were two words to describe the situation the United States is in right now in terms of the economy and the markets, I would choose stable and resilient . . . Whatever the election outcome, I think it will prove to be something the markets will able to digest and ultimately move forward from.

Third-Quarter Hedge Fund Strategy Outlook: K2 Advisors
Alternatives

Third-Quarter Hedge Fund Strategy Outlook: K2 Advisors

The recent recovery in commodity prices has relieved some of the emerging economies’ economic pressures that had been evident during 2015. As a result, valuations of select emerging-country equity and sovereign bond investments remain attractive relative to those available in developed markets.

Thin Slicing the Markets: Where’s the Deleveraging?
Perspectives

Thin Slicing the Markets: Where’s the Deleveraging?

It appears the majority of countries have not really deflated their debt bubbles at all since the Global Financial Crisis of 2008-2009—indeed many have, in fact, added to their burden.

What an (Economic) Drag It Is Getting Old
Alternatives

What an (Economic) Drag It Is Getting Old

The world is getting older (much older in some geographies), and to us this is without question becoming a meaningful drag on economic growth—one that will likely persist into the future.

Thin Slicing the Markets: A Serious Referendum for the British Public
Perspectives

Thin Slicing the Markets: A Serious Referendum for the British Public

While the consensus still anticipates a ‘remain’ vote, the end result is very much in question. The one-way tide that ‘stay’ had enjoyed for most of the spring has been shaken over the last several weeks.

The Intangible Art of Operational Due Diligence
Alternatives

The Intangible Art of Operational Due Diligence

The ‘artistic’ nature of operational due diligence (ODD) is a human exercise, and one that cannot be readily quantified and cataloged … The abstract or intangible qualities of a solid ODD program—wisdom, experience and judgment—cannot be overstated.

Thin Slicing the Markets: A Look at Debt, and Defensive Postures
Perspectives

Thin Slicing the Markets: A Look at Debt, and Defensive Postures

While Americans (and American corporations) continue to lever everything but their kitchen sinks on their collective balance sheets, the return for each dollar borrowed is rapidly diminishing.

ZIRPs and NIRPs and Unintended Consequences
Alternatives

ZIRPs and NIRPs and Unintended Consequences

There are countless examples in history, some more hubristic than others, in which man’s efforts to address a problem or control a system have resulted in miserable failure―regardless of best-laid plans or intentions.