The great economist John Kenneth Galbraith was fascinated by the fact that in markets, there is always a buyer for every seller. That may be easier to understand when stock prices rise, but what is puzzling is when they plummet. Even when their value is negative, as happened when investing in bonds for many years.
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Last October, the yield on the 5-year government bond reached 3.683%, its highest value in the last 10 years. That is a good indication of why government bonds have emerged as one of the key assets for investors today.
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When preparing for retirement, many savers hesitate between using a pension plan or an index fund to grow their savings. And although these are two different options, they are not necessarily antagonistic. In fact, they complement each other very well, since they provide a series of characteristics that you should know before making a decision.…
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The world is transforming to become more sustainable. Businesses are struggling to make their bottom line, while trying to limit their impact on the environment. Governments are scrambling to restructure their archaic institutions and facilities to be friendlier to people and the planet. But achieving many of these goals is neither easy nor cheap. For…
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The world of investing changed radically in 1952, when Harry Markowitz developed his famous portfolio theory, which would earn him the Nobel Prize in 1990. In a nutshell, Markowitz’s revolutionary idea was to find the best combination of assets to increase expected returns. From this search, the well-known efficient frontier was born, a curve formed…
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As a complement to the reporting of our mid-2024 portfolio returns, here we review the performance of the dollar ETF portfolios. It is also worth remembering that dollar portfolios are suitable only for those investors whose economy is “dollarized” or who want to have exposure to the dollar expressly as part of their assets. In…
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Returns on Savings Portfolio, as expected The returns of the Savings Portfolios have been, as expected, in line with what we have been communicating. The Savings Portfolios have been designed to replicate central bank interest rates with an optimized composition of money market funds that have this function. This is why we communicate that the…
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The first money market fund dates back to 1971 and was created in the United States. Since then, the industry has changed and grown to unimaginable levels. There are several reasons for this growth over the decades. One is that money funds are key elements in the financial markets, as they are arguably the oil…
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As we have discussed in previous issues, indexed Socially Responsible Investment (SRI) has better years and worse years. Since equity SRI indexes have existed, they have tended to be equal to or slightly better than their non-SRI benchmarks. As can be seen in the chart below, which compares the cumulative returns of our SRI index…
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Market commentary. The second quarter of 2024 was again favorable for global equity indices, while fixed income markets continued to struggle. Commodities also generally rose during the quarter.
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