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…
ProfitScore Update – June 2023
To the clients and friends of ProfitScore: A recent study from the US central bank has set off alarms in the financial sector, signaling a record increase in American businesses under financial distress and the possibility of intensified ramifications from the Federal Reserve’s war on…
ProfitScore Update – February 2023
To the clients and friends of ProfitScore: With the rise in popularity of 0TDE (0 days to expiration) options, investors should be wise about the impact this might have on markets. Remarkably, more than 40% of S&P-related options have a same-day expiry, or 0DTE, according to…
ProfitScore Update – January 2023
To the clients and friends of ProfitScore: January was a good month for both equities and fixed income. After finishing 2022 down more than -18%, the S&P 500 rebounded in January, posting a positive return of 6.3%. Similarly, the U.S. Agg, being down -13.01% for 2022, bounced…