Cool correlation chart from Richard Bernstein’s newest strategy note: Richard Bernstein uses LT Bonds as a counterweight in his portfolios, as many advisors have taken to doing, as opposed to more expensive forms of hedging (hedge funds, black swan funds, put protection etc): 3. Treasuries for diversification…yes, still. We have become somewhat notorious for our…

Cartoon by Harley Schwadron

It had been a frustrating year for those overweight US financials (guilty!) up until a couple of weeks ago as they’d managed to underperform most of the marketplace with rates falling and economic momentum sputtering. With the recent pickup in data (and short rates) however, this bet is starting to pay off for those who…

The US economy has created 5.3 million jobs since President Obama’s inauguration in January of 2009 (although we’ve had 10.9 million jobs created since the economic bottom 57 months ago). Starting from Obama’s first month in office, with the country deep in recession, the labor market has come a long way to where it is now….

GMO’s James Montier is out with a landmark white paper on the destructive nature of Shareholder Value Maximization (SVM) when taken past the point of economic utility and into the current stratospheric extremes. Generally speaking, SVM has fostered a corporate culture in which C-suite executives focus on short-term benchmarks (or get fired), eschew investment in…

Cartoon by Saturday Morning Breakfast Cereal