Coming into the year, our capital markets positioning was cautious given extreme valuations, rising inflation, and questionable prospects for continued growth. Our assumption was that an intense rise in prices for consumers — driven by a decade of accommodative monetary policy following the Global Financial Crisis extending through the COVID era — would need to Read More
Some quick thoughts on recent market volatility and declining asset prices.
It is difficult to believe that this is the third consecutive investment letter that has addressed the potential or actual impact of COVID-19 on financial markets. It appears the worst of it is over, and we are entering into an era of tolerable coexistence with the virus. Financial markets, as forward-looking mechanisms, are adjusting to Read More
The recent phenomenon of a Reddit-driven short squeeze on GameStop is a fascinating display of the interplay of investor behavior, crowdsourced investment ideas, market dynamics, and the internal regulatory mechanisms that govern Wall Street procedures. What it is not is an easy story to tell, despite the convenient Main Street vs. Wall Street narrative. This Read More