Investment Strategy Insights Archives

0 min

#Technically Speaking: Despite Correction, Investors Are Exuberant

Despite the recent correction in the markets, leading to a hedge fund imploding, investors remain exuberant. The hopes for more stimulus, government spending, and Fed liquidity displace fears of a correction.

View Post

4 min

MAP Views: The Seeds for Inflation Have Been Sown

During the first quarter, stocks marched higher, fueled by trillions in fiscal and monetary stimulus and continued expectations that a post-COVID-19 economy will be a strong one.

View Post

3 min

How to Hedge Interest Rates Using Mortgage Bonds

Agency mortgages are those that are explicitly or implicitly guaranteed by the government. There are three GSEs (Government Sponsored Entities); Fannie Mae, Freddie Mac, and Ginnie Mae. GSE mortgages and bonds backed by those mortgages have no credit risk, but do have interest rate risk.

View Post

0 min

Is the End of The Value Trade Near?

The end of the value trade may be near as investors push prices beyond economic growth expectations.

View Post

7 min

Liquidity is a Coward, it’s Never Around When you Need it

A wise man once told me that liquidity is a coward, it’s never around when you really need it. It has stood me in good stead over the years. As an investor traversing the decades one tends to occasionally find oneself in a period of alluring illiquidity premiums or times were accessing “the new new thing” is so new that the related market is inherently illiquid or “the smartest guys in the room” have created a new ‘guaranteed moneymaker’ that can only be accessed (via special invitation and high fees) by a select ‘lucky’ few.

View Post

0 min

#MacroView: Could A “Transaction Tax” Be A Good Thing?

I recently discussed why “Free, Isn’t Really Free” regarding the retail investor. While “free trades” have certainly reduced the transaction costs, the selling of data to the highest bidder has likely cost investors more than they saved.

View Post

2 min

Nasdaq #TradeTalks: Income investing in 2021

HANDLS Indexes Co-Founder Matthew Patterson joined Jill Malandrino on Nasdaq #TradeTalks to discuss income investing and a vehicle designed for a predictable flow of income.

View Post

0 min

The Fed Has Forced Investors to Take on Excess Risk

Since the “Financial Crisis,” the hope was that inflating asset prices would trickle down into economic growth. Unfortunately, after a decade of monetary interventions and artificially suppressed interest rates, the wealth gap has exploded. More problematic is the Fed has forced investors to take on excess risk due to the lack of alternatives.

View Post

10 min

Convertible Bonds in a Portfolio: Equity Participation with Better Sharpe Ratio

The Pier 88 Investment Team is constructive on the convertible bond asset class given a historically high Sharpe ratio, competitive yield, positive correlation with interest rates, risk-reward profile, and a plethora of new issuances allowing for a diversified portfolio to express thematic views.

View Post

7 min

#MacroView: Yellen’s “Go Big” MMT Plan May Disappoint

If you haven’t heard about Modern Monetary Theory, or “MMT” for short, by now, you will soon.