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.
In 2024 U.S. corporate stock buybacks have reached unprecedented levels, making them an essential consideration for investment managers pursuing asymmetric returns. The latest insights from Goldman Sachs reveal that buyback activity, led by U.S. corporates, remains a significant force in the equity markets, promising to influence the market dynamics through year-end and beyond.
In the ongoing debate between active and passive management, there is a clear divergence in performance between equities and fixed income. Recent data reveals how active management excels in the bond market, presenting a strong case for investors aiming to achieve asymmetric risk/return profiles.
When a stock reaches an all-time high, there is no overhead resistance based on previous price levels because it hasn't traded above that price before. But there are several factors to consider regarding selling pressure and market behavior:
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.