📑 Research Notes for 2021-07-26
This week, we look at GMO's bearish forecast, small cap underperformance, and the recent changes on the yield curve.
We conduct extensive investment research and share the most interesting content that we come across every week. Here is a curated list of this week’s top observations.
Do not reply to this email with any service requests, contact us for support if needed.
GMO Forecasts are Extremely Bearish.
(GMO)
“Our main message is thus: in a global growth bubble, we are advising clients to do three things: 1) exploit the bubble with an equity long/short strategy, 2) avoid the bubble by investing in alternatives, and 3) concentrate assets away from the bubble in emerging market value, Japan small value, cyclicals, and quality. For fixed income, keep duration shorter than normal, and use active management in the credit space, where interesting pockets of dislocation remain ripe for the picking while spreads are tight.”
Small Cap Underperformance Persists.
(Compound Advisors)
Small caps continue to weaken, giving back all of their relative strength since last November. The narrative of smaller companies disproportionately benefitting from US stimulus efforts is fading.
Term Spread and Inflation Breakeven Declining, and Real Rates Still Low.
(Econbrowser)
Curated by Joseph Lu, CFA®
Joseph has over a decade of experience as an investment professional, primarily in quantitative analysis and portfolio management roles. He is the founder and managing director of Conscious Capital Advisors and a CFA® Charterholder. The CFA charter is a globally respected, graduate-level investment credential by the CFA Institute, a global association of more than 90,000 investment professionals working in over 133 countries.
🔗 Connect with us on LinkedIn, Facebook, or Twitter.
Have a question about what we shared? Email us at info@consciouscapital.pro.
Do not reply to this email with any service requests, contact us for support if needed.
The information presented in this newsletter is for educational purposes only and is not a solicitation or recommendation for any specific security, product, service, or investment strategy.
Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to consult with a qualified financial advisor, tax professional, or attorney before implementing any strategy or recommendation you may read here.