Short-term outlook Despite the markets being very over-bought (RSI’s over 80 and at these levels only three times in 10 years), the S&P 500 index managed to close the week near its all-time high of 2351. Right now, it is looking unlikely that a pullback beyond 1% or 1.5% will happen because there is still […]
Investment Thoughts – Summary Jan 31, 2017
Signet’s Global Multi-Strategy Fund Signet Global Multi-Strategy Loan position is supported by its floating rates, limited duration and positioning at the top of the capital structure. This, and supportive growth, should continue to draw investors to loans in 2017. US and European short duration CCC bonds offers value and rate protection, with proper credit work. […]
Management Thoughts for Jan 24, 2017
Yellen will raise rates again soon – inflation in wages and costs are starting to be passed on to consumers. Markets should soon start to anticipate two fed hikes by the May Fed meeting. Yellen sounds hawkish, warning about delaying rate hikes for too long; US consumer inflation is over 2%, shelter CPI is higher […]
Signet Global Multi Strategy Portfolio Enters 2017
What could the surprises of 2017 be? A surprise is something the consensus does not expect. Investors are now expecting higher growth and more inflation, the Trump bump. They have invested more heavily in equities and expectations are high. But demography, final demand and recently sharply higher rates might get in the way. And with […]
Demographic Influence on Economics, Asset Prices and Signet’s Investment Philosophy – Comment
A transformation is taking place in the Developed World. It is vital to understand that demographics will worsen over the next thirty-five years and this is already having a dramatic influence on economic growth and asset prices. 1) We are feeling the impact of a declining or slower-growing labor force, an aging population and lengthening […]
Business Development Companies Opportunity
Industry Overview BDCs are lightly leveraged Closed End Funds that trade on US exchanges (NYSE and NASDAQ). They originate and invest in loans to companies that are generally too small to access public markets. Several BDCs are of institutional investor quality. Since September 2014 the S&P BDC Index has fallen 20%, and many BDCs are […]
Why rates should stay lower for longer
High yield is over-crowded, and there is nothing to gain any longer by being invested. Is this the case? How will high yield react in the case of rising interest rates? The question that should be asked is, “Are we at the end of a five year bull market in corporate bonds or at the […]
