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In normal down markets, it’s usually easy to see why diversification matters. But in the current environment, shaped by rapidly rising interest rates, we’re seeing both stocks and bonds underperform. No matter how many historical precedents argue against the inclination, it’s easy to want to uproot one’s current portfolio. Read more to understand why that’s generally not a good idea.
Read MoreWe’re not in the business of making forecasts at SineCera Capital. Rather, we’re focused on building a risk-balanced portfolio that we think serves our clients well without relying upon any market predictions. Understandably, we were quite happy with how our All-Weather Core portfolio performed in 2020, but knew that the law of averages could come into play in 2021. So how to our risk-balanced portfolio do? Better than we initially expected.
Read MoreWhile some LPs may applaud Sequoia’s move to consolidate investments into an open-ended vehicle, blurring the lines between what makes a private market and public market manager successful may only lead to disappointing results.
Read MoreThe hype around GameStop and r/WallStreetBets may have a hint of deja vu for those who were trading stocks in the late 90s. Fortunately, behavioral finance provides valuable insight into why history seems to be repeating itself and why NextGen day traders may not be so different than those professional investors on Wall Street they’re determined to beat.
Read MoreOn March 10, 2020, we wrote a post (“Preparation Beats Reaction”) that highlighted how our All-Weather risk parity portfolio fared after one the largest single-day losses in equity markets since 2008. At the time, we could never have predicted the year we were about to endure. But if 2020 taught us anything it was that preparation still beats reaction.
Read MoreOnce again, stocks are “climbing the wall of worry.” But why do commentators continue to use such phrases, and why are we so often influenced by them? We may be in unprecedented times, but the catch-all explanations remain the same.
Read MoreWhen it comes to diversifying equity exposure, keeping it simple can lead to a more balanced and efficient portfolio.
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