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All Asset No Authority

Nov 06 2020

Tough Times For Allocators

  • Nov 6, 2020

Diversified, multi-asset portfolios have been weak performers for many years. The ultra-flexible, macro hedge-fund manager represents one extreme of the asset allocation continuum. At the other extreme would be the passive holder of multiple asset classes. It’s been a tough three years for this breed, too.

Apr 07 2020

Are You “De-Worsified?”

  • Apr 7, 2020

In recent weeks, we’ve seen the “sell-side” investment community get about as cautious as it ever gets, recommending investors to “trim risky holdings on ‘up’ days” and “stay diversified.” However, these cheerleaders’ idea of diversification is usually to hold more equities in different sizes and styles.

Mar 06 2020

Are You “De-Worsified?”

  • Mar 6, 2020

The past 26 months have been wild ones for equity investors, but one could have essentially matched the S&P 500’s healthy return of +18.1% with a portfolio that was evenly split between the “fear” assets of Treasury bonds and gold. REITs have been solid, too, but EAFE and the Russell 2000 are now both total return losers since the beginning of 2018.

Jan 08 2020

A Good Year To “Own It All”

  • Jan 8, 2020

It’s no surprise that U.S. Large Caps were the #1 asset class performer in 2019. We were surprised that last year was the only one of the decade in which the S&P 500 won the annual performance derby. Here we review the annual performance of “Bridesmaid” asset class and sector, “Perfect Foresight,” and Lowest P/E sector.

Aug 07 2019

Odds & Ends

  • Aug 7, 2019

Here are some brief follow-up notes on topics covered in recent months’ Green Books.

May 07 2019

AANA: The Good And The Bad

  • May 7, 2019

Large Cap U.S. Technology has been the place to be this year, but even an “unmanaged” portfolio with a variety of assets has fared well so far in 2019.

Jan 08 2019

“De-Worsification” Ruled In 2018!

  • Jan 8, 2019

The market difficulties of 2018 were hardly limited to stocks. Commodities, in fact, were the worst performer among the seven major asset classes.

Dec 21 2018

Market Observations

  • Dec 21, 2018

It’s been one of the worst years on record for diversification, with our hypothetical All Asset No Authority (AANA) portfolio down 7.2% YTD through yesterday. That’s the second-worst year for AANA since 1972, and there’s probably not enough time left for performance to undercut 2008 (-24.9%) for the bottom spot.

 

Nov 23 2018

Thanksgiving Leftovers

  • Nov 23, 2018

Whatever one’s preferred leftovers from yesterday’s feast, the odds are good you’ll find them more appetizing than the slop served up by global asset markets this year. Stocks have obviously been turkeys, but all the surrounding trimmings that help diversify a portfolio have proven anything but complementary to the main course.