Let’s talk about bonds…
WLA’s CURRENT VIEW:
Volatility as of March 14-16, 2023 is creating profound changes in the Treasury market…5% Treasury yields were a great buy last week and remain attractive today. As rates have declined in recent days, this is not good (for future bond allocations) if bonds revert to being a low return asset class again. The Fed has created a very difficult situation (high inflation + bank stress) which makes it even more difficult to manage the direction of rates in 2023.
Everyone Macarena (I mean Macro) + an excellent podcast about Time, Money, & Experiences
Similar to the macarena dance and its popular run years ago…it seems being a macro economists is going viral, too. The reason is simple - it’s all about the Federal Reserve as highlighted in my January commentary. The fever pitch attention on the Fed/Inflation/Pivot won’t be changing anytime soon…they are the DJ setting the mood on the dance floor.
Seven Charts to Frame 2022 and how to Approach 2023
US Equity Valuations:
The Buffet Indicator is a measure of stock market valuations and is an overly simplified representation to answer the age old question – are stocks over or under valued. The risk-on euphoria during 2020-21 drove this measure to highly elevated levels similar to the 1999-2000 dot com era.