Market Commentary

China and Other Stories

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August has been a particularly nasty month for risk assets. This period appears to be more serious than the brief market correction we saw last October. News of problems in China, particularly of a shrinking in their manufacturing sector has caused investors to indiscriminately sell equities, purchase government bonds, and raise cash in money market accounts. Markets seem to decline quickly in recent years only to bounce back nearly as swiftly. Corrections have been short-lived non-events since 2011. Despite being in a bull market, in recent years the VIX (measure of market volatility) has seen shocking intraday rises. On Friday […]

Market Commentary

Lessons to Learn from Puerto Rico

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Puerto Rico has a population close to Connecticut’s, with land area twice the size of Long Island’s, and a GDP near that of Mississippi. The country also has more debt than any other state in the US at over $70 billion, with the exception of New York and California. I’m not going to spend this memo discussing mundane investment cycles or economic conditions, but rather supply some perspective on the situation and what we can learn from it, not only in our investment portfolios, but also in our overall decision making. Puerto Rico is a colony in a post-colonial world […]