Beyond Bulls & Bears

Searching for Natural Hedges Against Interest-Rate Risk

Searching for Natural Hedges Against Interest-Rate Risk

We have found that historically over time, interest-rate moves don’t often play as large of a role in a broadly diversified fixed income portfolio as one might think.

Unconstrained Global Investing in an Extraordinary Monetary Policy Environment

Unconstrained Global Investing in an Extraordinary Monetary Policy Environment

As we see it, it is only a matter of time before US wages start to rise to levels where inflation is triggered. Using the Fed’s own estimates, we are quite close to what’s considered to be full employment. To us, this does not justify 0% interest rates.

Reading Fed Tea Leaves

Reading Fed Tea Leaves

Clearly, inflation plays a large role in fixed income instruments. We see fairly benign inflation, albeit probably ticking up as the labor market improves. That said, we are probably not as optimistic as the Fed on the inflation front.