ProfitScore Update – August 2024
To the clients and friends of ProfitScore: Looking at different indicators used to predict the market is always fascinating. While we at ProfitScore don’t use the Sahm Rule as an indicator, it was interesting enough to share. The Sahm Rule, named after economist Claudia Sahm, is a simple but effective…
ProfitScore Update – June 2024
To the clients and friends of ProfitScore: The Bond Bear Market Stocks can trend for years, but interest rates trend for decades. We are four years deep into a bond bear market, and this has caused many advisors to rethink their asset allocation strategy. For…
ProfitScore Update – May 2024
To the clients and friends of ProfitScore:The Buffett Indicator Is Near an All-Time High Warren Buffet is often mentioned as the greatest investor of all time. Berkshire Hathaway, Warren’s investment company, has 189 billion dollars invested in cash equivalents. It’s the largest cash position in…
ProfitScore Update – April 2024
To the clients and friends of ProfitScore: The period following the 2008 financial crisis was marked by historically low interest rates, a trend that appears to be reversing in the current economic landscape, suggesting that high interest rates may persist over an extended period. This…
ProfitScore Update – January 2024
To the clients and friends of ProfitScore:See Saw as a Predictor? Last year, we witnessed a significant rebound in the market after a notably challenging period, which had experienced one of its worst years, particularly for a 60/40. This pattern often leads to the assumption…
ProfitScore Update – December 2023
To the clients and friends of ProfitScore: Potential Impact of BOJ Policy Shift on US Treasuries and Global Markets We’re closely monitoring a significant development in global finance: the Bank of Japan (BOJ) is showing signs of ending its negative interest-rate policy. This speculation has…
ProfitScore Update – October 2023
Exploring the Impact of Basis Trading in Financial Markets The SEC is about to pass new rules impacting basis trading in US Treasuries. Why should you care? First, let me give you a little background on basis trading. In the complex world of finance, the…
ProfitScore Update – September 2023
To the clients and friends of ProfitScore: The Inverse Dance of Equities and VolatilityEquities and volatility, two vital financial metrics, often engage in a rhythmic dance, moving in opposite directions. Here’s a glimpse into their inverse relationship. The Inverse Tango: Historically, when stock prices (equities) rise,…
ProfitScore Update – August 2023
To the clients and friends of ProfitScore: In the previous month, we explored the consequences of passive indexing on correlations. This month, we shift our lens to optimizing correlations within portfolios. As finding uncorrelated asset classes becomes increasingly complex, we’ll delve into the merits of…
ProfitScore Update – July 2023
To the clients and friends of ProfitScore: One of the most fundamental and important parts of investing is achieving diversification through low or negative correlation. With the stratospheric rise in passive index investing, diversification is becoming harder and harder to find. Below is a chart…