Asymmetric Investment Returns is a blog authored by Mike Shell since 2006, covering topics about asymmetric investing and trading for asymmetric risk/reward in pursuit of asymmetry.
Inflation is close to the Federal Reserve’s target. While this doesn’t mean prices are going down, they are rising less quickly, and is why the Fed plans to lower rates.
With starting yields nearly two times higher than the average yield since 2010, investors could stand to benefit from attractive return potential in fixed-income/bond investments going forward.
As you evaluate your investment strategy, keep in mind the importance of adaptability and informed decision-making. The bond market holds substantial potential, and with the right approach, you can enhance your portfolio's resilience and performance in the months ahead.
After a central bank increases interest rates the economy often enters a recession in the years that follow. Historically bonds have performed well whether a recession occurs or not.
Navigating volatility through the lens of the VIX and SPX options presents tactical investment managers with unique opportunities. By understanding the asymmetries in risk and reward, traders can position themselves to capitalize on volatility while effectively managing downside risks. Continuous monitoring of market conditions and adaptability in strategy will enhance the ability to thrive in volatility-driven environments.
Tactical investment managers should be mindful of how these shifts in unemployment rates can impact various sectors. Historically, lower interest rates can lead to increased market activity, particularly in interest-sensitive areas such as real estate and consumer discretionary spending.