Asset Allocation Reports
Asset Allocation Bi-Weekly – A New Factor for Gold Prices (July 15, 2024)
by the Asset Allocation Committee | PDF The standard regression model is as follows: Y = α +β(X) + ε Where Y is the dependent variable, X is the independent variable, α is the intercept, β is slope and ε is the error term. No model, no matter how many independent variables are added, can… Read More »
Asset Allocation Bi-Weekly – Small Caps and the Hope for a Soft Landing (June 24, 2024)
by the Asset Allocation Committee | PDF They don’t call him Maestro for nothing. In the mid-1990s, Federal Reserve Chair Alan Greenspan achieved what was once thought of as impossible: an economic soft landing. As the US labor market showed signs of tightening, he raised interest rates from 3% to 6% in 1994 to preemptively… Read More »
Asset Allocation Bi-Weekly – Copper, Gold, Treasurys, and the New World (June 10, 2024)
by the Asset Allocation Committee | PDF Early 2023 served as a stark reminder that correlations can break down when least expected. Last year, a decline in the copper/gold ratio led many investors to anticipate a fall in longer-term yields, particularly for the 10-year Treasury note. However, these expectations were shattered as yields not only… Read More »
Asset Allocation Bi-Weekly – The Importance of the Federal Reserve’s Inflation Target (May 28, 2024)
by the Asset Allocation Committee | PDF Money has three characteristics: medium of exchange, store of value, and unit of account. When money is taught in undergraduate economics classes, these three functions are treated as self-evident, but careful observation suggests that that the first two characteristics are contradictory. If a monetary authority emphasizes the medium… Read More »