March 2024 - Navigating Market Timing and Fear-Driven Selling
March 26, 2024
Dear Investors and Friends, In the complex world of investing, one of the most prevalent and costly errors individuals make is succumbing to the allure of market timing and allowing fear to steer their decisions. A recent Morningstar report (the full report can be found by clicking he …
February 2024 - How to Get a Lump Sum of Long-Term Capital Invested in the Market Without Losing Sleep
February 27, 2024
Dear Investors and Friends, Warren Buffet, when talking about the demise of Long-Term Capital Management, once commented that, “…to make money they didn’t have, and didn’t need, they risked what they did have, and did need. That is foolish.” For most of us, however, our investing live …
January 2024 - Drags on Cash Performance
January 23, 2024
Dear Investors and Friends, In prior letters we articulated why savvy investors invest their cash in short term US Treasury bonds. Specifically: In Active Cash Management we provide an overview of what it means, at least for RCM, to actively manage US Treasuries and what the actual be …
December 2023 - Why We Love Munis
December 21, 2023
Dear Investors and Friends, While RCM has a 14-year track record in municipal bonds, for the last several years we generally discouraged municipal bond portfolios for our clients. There are variety of factors that influenced this decision, but they all flow back to one basic issue – s …
November 2023 - US Equities vs. Emerging Market Equities
November 29, 2023
Dear Investors and Friends, In last month’s letter, Mike and I did a deep dive into what historical data says about the performance of US equities vs. developed country equities and the implication on RCM’s approach to equity asset allocation. In this month’s letter, we continue our d …
October 2023 - US Equities vs. Developed Country Equities
October 24, 2023
Dear Investors and Friends, A few months ago, Mike and I wrote about equities and the long-term where we emphasized the upside potential of equities versus bonds and the implications of time horizon on our approach to asset allocation. In this month’s letter, we return to the topic of …
September 2023 - Do TIPS Bond Funds Hedge Inflation? Yes, But…
September 27, 2023
Dear Investors and Friends, Inflation, the subtle force that erodes the purchasing power of our hard-earned money, is ubiquitous as it is insidious and silently permeates the fabric of our daily lives. Hedging against inflation is prudent and many people attempt to do so by buying fun …
August 2023 - Active Cash Management
August 25, 2023
Dear Investors and Friends, At Roosevelt Capital Management (RCM), we are active managers of fixed income securities including U.S. Treasuries. Most people understand the first part of that sentence but struggle to understand how Treasuries can be actively managed. So much so in fact, …
July 2023 - Equities & The Long-Term
July 26, 2023
Dear Investors and Friends, Several months ago, Mike and I wrote a letter on the importance of time horizon when making asset allocation decisions. While we made note of the well-established fact that equities outperform bonds over the long term, most of that letter was focused on man …
June 2023 - The Silver-Lining in Today’s Market
June 27, 2023
Dear Investors and Friends, There are a lot of potential downsides in the current volatile financial landscape. For investors holding cash, however, there is one significant and simple upside. We believe that the best place, by far, to park cash in the current environment is directly …