Insights

So far, 2019 has been great for stocks and bonds; both hit all-time highs this week. And it’s justified. Interest rates are low, business optimism is high, inflation is benign, corporations are more profitable than ever, and the general feeling among consumers is positive. Moreover, market fundamentals are not stretched. The fastest-growing companies are trading at high multiples of their earnings, but most of the market is trading within historical norms.

Rather than building an investment strategy on ephemeral market forecasts, we prefer to look for the known risks and opportunities and weigh them against probable outcomes. We can never know when a certain trend will turn, but we should be aware of those things that are unsustainable and position ourselves accordingly.