The “All-Weather” Portfolio is Toast
Portfolio construction is an unquestionably important aspect of portfolio management.
Portfolio construction is an unquestionably important aspect of portfolio management.
We are witnessing that today after a nearly decade-long period of low oil investment, with no signs of it abating, leading to global oil pumping capacity constraints and record low inventories.
Food, water, shelter, and energy are some of humanity’s most basic needs, yet energy is one of the most misunderstood markets in the world today.
In the late 1990s, Warren Buffett’s Berkshire Hathaway started to buy silver in a big way.
The world has exited one long-term secular trend and have entered a new long-term secular trend with very different investment implications and economic conditions under our current global system
The adage that “there is nothing to fear but fear itself” is apropos for investors in the energy markets. Anyone trying to time the next recession or downturn in key commodity producers is likely making a futile mistake based on fundamentals.
Our last note explained that when governments have nosebleed debt-to-GDP levels, there is only one way out for them: much higher levels of inflation to get their balance sheets to more manageable levels.
The world has exited one long-term secular trend and have entered a new long-term secular trend with very different investment implications and economic conditions under our current global system
The cruel paradox is that one might think investing in economically sensitive industries such as oil and natural gas isn’t a good place to be when a recession appears imminent because of an inverted yield curve.
Our economy is modeled on a debt-based system that must always grow. Without growth, we cannot service previous deficits, which is a problem for our overly indebted government.