Bonds Are A “Return-free Risk”

We continue to view the bond market as a “return-free risk”.  It is a very crowded trade, as institutions and individuals have fled what they perceive as riskier equity assets, for what they believe is solid income generated by bonds.  Yet, with yields as low as they are today, it only takes a small move down in bond prices to wipe out…

silhouette of working oil pumps on sunset background

Market View April 2016: 2nd Quarter Outlook

The stock market started off the year exceptionally weak, with all major market indexes down double digit percentages going into the low on February 11. We believe much of the weakness was due to selling by foreign sovereign wealth funds, where the related country’s fiscal budget is heavily affected by the price of crude oil.