It was five years ago yesterday – March 9, 2009 – that the US stock market tumbled to its lowest point in the 2008/09 market crash. The five years that followed have seen a tremendous reinflation of asset values for risky assets.
Sellwood Consulting’s 2014 Capital Market Assumptions are now available. These assumptions are the primary input for our asset allocation work for clients, being the input variables for mean-variance optimization, Monte Carlo analysis, and risk budgeting.
This year, though we have made incremental enhancements to our methods for gauging the future value of assets, we have maintained our focus on the primary, reliable drivers of risk and return. Our assumptions are anchored in the empirical facts
Our staff, and several of our family members, spent the morning of the Martin Luther King, Jr. holiday planting native red alder and dogwood trees at a local park. As noted in our article Paper Cuts, we are believers in being responsible stewards of natural resources,
All of us at Sellwood Consulting wish you our best for a joyous holiday season, and a happy, healthy, and prosperous 2014.
On behalf of each of our clients, we have made a donation to Medical Teams International, a global health organization that helps people affected by disaster, conflict, and poverty in 70 countries. We hope that you will consider joining us in supporting this worthy organization.
Active Share is a relatively recent innovation in investment analysis and, unlike many innovations in the investment world, one that we believe enhances the investment process. We use Active Share to quantify how “active” active managers really are, what level of fees are appropriate to pay those managers, and ultimately, we believe, to recommend better portfolios for our clients.