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Temporary stabilization measures

Genevieve Signoret

Letter from the President (Leer la versión en español.) Summary I don’t know whether we’re experiencing a mere market correction or have entered a bear market. I do not think the U.S. economy is entering a recession. For clients whose investment horizons are 2-5 years, we’re working to stabilize portfolios by temporarily reducing exposure to […]

Ditching US investment grade corporate bonds in favor of USTs

Genevieve Signoret

Letter from the President In client and model portfolios[1], we are selling U.S. investment grade corporate bonds (average duration: 5–10 years) and using the proceeds to buy U.S. Treasury bonds (average duration: 7–10 years). We explain why we’re making this move in this week’s edition of La Carpeta Negra Fixed Income: “What are we doing […]

Fed hike in March

Genevieve Signoret

Letter from the President I’m in New York and Princeton this week so will be brief. Today’s U.S. jobs report does not change my judgement that the world and U.S. economies are not entering a recession but do shift my central-scenario outlook for the Fed: I now expect the first rate hike to take place […]

Six questions about the ongoing volatility

Genevieve Signoret

Letter from the President Today I answer six questions you may be asking yourself about the ongoing volatility: Has the bull market ended? Could we be wrong? When might the volatility end? If we saw this coming, why are our client portfolios down? If we’re not shifting strategies, what are we doing? Is there anything […]

Investing small amounts for the medium term (Part 3 of 3)

Genevieve Signoret

Letter from the President This is part three of a three-part series on how we’re coping with transaction costs on small transactions. We illustrate our approach by focusing on a situation we often face: a client has a large account but, within it, one small “bucket” (portfolio). We consider the case in which the client’s […]

Investing small amounts for the medium term (Part 2 of 3)

Genevieve Signoret

Letter from the President This is part two of a three-part series on how we’re coping with transaction costs on small transactions. We illustrate our approach by focusing on a situation we often face: a client has a large account but, within it, one small “bucket” (portfolio). We consider the case in which the client’s […]

Investing small amounts for the medium term (Part 1 of 3)

Genevieve Signoret

Letter from the President This is part one of a three-part series on how we’re coping with trading fees on small transactions. We illustrate our approach by focusing on a situation we often face: a client has a large account but, within it, one small “bucket” (portfolio). We consider the case in which the client’s […]

Quick update on the moving target that is Greece

Genevieve Signoret

Letter from the President Greece is a moving target. Please see Grecia: esperamos noticias de Bruselas for an update.We’re hopeful, however. So much so that on Friday we closed out emergency positions in long-term Treasury securities that we had taken with clients’ excess cash.

Taking delight in this turbulent summer

Genevieve Signoret

Letter from the President What a week! I hope you found this briefer on Greece and this second one useful in interpreting the news flow. We were taken by surprise last Friday when, after trading hours (at 7:00 P.M. Mexico City time), Greece announced that it would hold a referendum on the accord just reached. […]

We update our portfolio strategies

Genevieve Signoret

Letter from the President We’re updating our model portfolio[1] strategies. We’re changing the investment horizon for La Carpeta Negra Short Term (LCN-ST) to 12–24 months from 6–24 months. This is our way of recommending that clients keep one year of liquidity requirements in U.S. dollar cash. We define “cash” as anything FDIC protected (checking and […]