To download a printable version of this article, click here: 201810 OPCM – Marijuana Around this time last year, we wrote an article highlighting the increasing signs of speculation and euphoria we were seeing in the burgeoning cryptocurrency market. Our skepticism had less to do with the merit or potential use of cryptocurrencies, and more … Continue reading Seeing Green?
To download a printable version of this article: 201810 OPCM – The Risk Of Investing In One Asset Class For many decades, the best risk-adjusted returns were found using a multi-asset class investing approach. Historically this discipline, used by most of the top performing large foundations and endowments, enabled investors to achieve equity-like returns with … Continue reading The Risk Of Investing In One Asset Class
To download a printable version of this article: 201810 OPCM – Foreign Currency Conundrum On August 13th, 2018 a headline in the International Business Times read, “Turkey facing currency meltdown and credit crunch fears”. The “meltdown” the article was referencing was a three day, 30% decline in the value of Turkey’s currency, the Lira. Normally, … Continue reading Foreign Currency Conundrum
Growth stocks have outperformed value stocks for the past eleven years in nearly a straight line. Most investors are now dramatically overweight growth stocks and growth sectors like technology,communications, healthcare, and consumer discretionary. Recently our investment team is now finding a record number of potential new investments that are labeled value stocks. In this article … Continue reading The Overcrowded Growth Trade
We are pleased that a number of new clients have chosen to work with OPCM in 2018. As we analyze new client and prospective client portfolios, a common theme appears in these portfolios – the combination of very high exposure to U.S. stocks, and an overall lack of diversity. It is easy to understand why … Continue reading The Tails To Heads Flip In U.S. Stocks
Times change, but thankfully for longer term investors, short-sighted fear and greed in the financial markets remain the same. 2017 was the best year for emerging market (EM) equity returns since 2009. EM was up 37%, beating domestic equities for the first time in five years. During 2017, the worst peak-to-trough decline was 5%, the … Continue reading Emerging Opportunities
For many decades, a multi-asset class approach delivered superior returns with less risk. By approximately, equally weighting the major asset classes, an investor could earn 8-9% returns with far less volatility than a portfolio comprised solely of equities. However, in reviewing the last ten years, a simple equal weighting has failed to generate meaningful returns. … Continue reading Why Investors Are Focused On U.S. Equities In 2018
2017 extended the domestic equities bull market to nine years. Over this span, equities were able to continuously ascend through a litany of worries and slow earnings growth because of low valuations, low interest rates, low inflation, and an accommodative Federal Reserve. Over time these variables slowly shifted, and now as we enter the second … Continue reading The New Environment For U.S. Equities
Both domestically and throughout the globe, most equity markets generated 20%+ returns in 2017. Last year was a record for equities in many ways. Domestically, U.S. markets saw record low volatility. Additionally, it was the first year equities rose in every single month. Finally, U.S. equities ended 2017 with a record streak of 681 days … Continue reading Our 2018 Global Equities Outlook
Over the last year or two, much of the narrative around U.S. stocks has focused on FAANG (Facebook, Apple, Amazon, Netflix, Google), along with a select few other high growth companies like Alibaba and Tesla. These high growth stocks have been in vogue mainly because of their recent high earnings growth and strong stock price … Continue reading Growth in Value
