The Investment House Commentary
What’s Counted And What Counts?
Numbers, numbers, numbers!
There are so many ways in which we attempt to track the health of the economy, the value of businesses, and the attractiveness of investments. Often, there are so many numbers, it is hard to decipher the meaning in all of them. To read the entire report: The Investment House Quarterly Q2 2014.
These days, so much of our attention is absorbed by short term items: an email, a news report, an earnings announcement, a text or a blog post. Since the number and variety of media forms has proliferated, while our capacity to process them has remained the same, it is understandable that we feel a sense of growing data fatigue. What does all of this stuff mean? What am I supposed to do with it? How should it affect my decision-making, if at all? To read the entire report: The Investment House Quarterly 1Q2014
For the fiscal year 2013, the gap in performance between the Barclays 20+ Yr. Treasury Index and the S&P 500 is over 45%, the largest such gap in asset class performance since the early 1960s. The question is: what significance does this have for the future? We think there are two basic developments we should expect. To read the entire report, click here: The Investment House Quarterly 4Q2013
Year to date, the gap in performance between the Barclays 20+ Yr. Treasury Index and the S&P 500 is over 30%. It is hard to know how far, and at what rate this readjustment will occur, but with 10 year Treasury rates still yielding below 3%, it is hard to imagine a large decline in interest rates. To read the full report: The Investment House Quarterly 3Q2013
It has been exactly a year since we wrote about risk-aversion, the return-less risk afforded by most fixed income assets, and the relative attractiveness of equities (“Equity Assets Continue On Sale: June 2012”). Since that time, the Barclay’s US Treasury 20+ Year Benchmark Return has declined
9.33% while the S&P 500 has increased 20.60%. In other words, in only one year, the spread between bond and stock returns has been almost 30% (29.93% to be precise). To read the full report: The Investment House Quarterly 2Q2013