Eric Clark, Portfolio Manager

The asset management industry is dominated by a buy-hold-hope mentality, which makes sense in most cases because, statistically, the equity markets go higher 80% of the time. We are taught that to achieve great long-term returns, we must be willing to ride through periods of high volatility and that corrections happen along the way. Considering that the long-term average peak-to-trough drawdown in the S&P 500 is 14%, I believe that most financial advisors and clients would agree that a smoother ride would be the preferred way. Strong returns with lower volatility along the way sounds a lot like having your cake and eating it too. What if this might be possible?

The asset management industry is dominated by a buy-hold-hope mentality, which makes sense in most cases because, statistically, the equity markets go higher 80% of the time. We are taught that to achieve great long-term returns, we must be willing to ride through periods of high volatility and that corrections happen along the way. Considering that the long-term average peak-to-trough drawdown in the S&P 500 is 14%, I believe that most financial advisors and clients would agree that a smoother ride would be the preferred way. Strong returns with lower volatility along the way sounds a lot like having your cake and eating it too. What if this might be possible?

The big question for investors in today’s low interest rate environment is what they should do with their “safe assets” and whether they should invest in bonds. This reminds of the fact that I occasionally I like to end the day with a drink and my preferred fruit juice is the ruby red grapefruit. What kind of drink would it be if I used a grapefruit that had no juice left in it? A bad one is the correct answer.

Presently, there is about $3.5 trillion in bank accounts earning nothing for investors. With the Federal Reserve (Fed) keeping interest rates low for as long as they can and financial services companies refusing to pay anything on their deposits, sitting in cash can be a very detrimental thing. It might make you feel good, but it certainly won’t offer you much return.

With the conflict between the U.S. and China set to increase and stay fluid for many years to come, I thought it was important to talk about why we think Asia is a key growth driver for the world.

With the conflict between the U.S. and China set to increase and stay fluid for many years to come, I thought it was important to talk about why we think Asia is a key growth driver for the world.

Lululemon has become the most relevant and recognizable athleisure brand in America and increasingly around the world. The company’s stores offer exceptional aesthetics, strong customer service, and the brand now serves men in a major way.

Lululemon has become the most relevant and recognizable athleisure brand in America and increasingly around the world. The company’s stores offer exceptional aesthetics, strong customer service, and the brand now serves men in a major way.