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 …
May 2023 - The Debt Limit Debate
May 02, 2023
Dear Investors and Friends, We are receiving many questions about the debt limit debate. The purpose of this letter is to provide our readers with the questions we are receiving regarding the debate and our answers.
April 2023 - Q1 2023 Performance Review
April 25, 2023
Dear Investors and Friends, The increase in interest rates that began in 2022 sent shockwaves through every corner of the market and woke investors up to three stark realities: Higher inflation is back after a nearly 40-year hibernation, Interest rate risk is real as evidenced by the …
March 2023 (Part II) – Charles Schwab Risk and Your Potential Exposure
March 14, 2023
Dear Investors and Friends, Following up on yesterday’s letter that dealt with developing a better understanding of the risk of failure at a bank, we received several questions from clients regarding the relative safety of their assets custodied at a broker-dealer custody bank in gene …
March 2023 (Part I) – How to Protect Your Cash from the Risk of Bank Failure
March 13, 2023
Dear Investors and Friends, In his most recent letter, Warren Buffett said, “our CEO will always be the Chief Risk Officer- a task it is irresponsible to delegate.” The importance of thoughtful and comprehensive risk management was highlighted last week and this weekend by the failure …
February 2023 – 2023 Outlook
February 15, 2023
Dear Investors and Friends, The purpose of this letter is to discuss RCM’s outlook for the fixed income market and, more generally, inflation and the economy over the next twelve months.
January 2023 – 2022 Performance Review
January 24, 2023
Dear Investors and Friends, 2022 was an incredibly unusual year for the markets with both stocks and bonds down. Going all the way back to 1976, there was only one other year, 1994, that stocks and bonds were both negative and 2022 is the only year that both were down double digits. S …
December 2022 – The Importance of Time Horizon
December 15, 2022
Dear Investors and Friends, Why should an investor allocate capital to short duration high yield corporate bonds (SDHYCB)? Mike and I get asked this question fairly frequently and the purpose of this letter is to provide our perspective on an answer. Superficially, I believe the point …
November 2022 - FTX & RCM’s Credit Process
November 29, 2022
Dear Investors and Friends, Investors, business professionals and the media spend a lot of time talking about, analyzing and ultimately investing in ideas. Is this new company’s product a good idea? Will the CEO’s new strategy work? Is there a market for this new app or service? These …
October 2022 - Q3 2022 Performance Review
October 25, 2022
Dear Investors and Friends, A theme we have been exploring this year is the “Great Reset,” the across-the-board reduction in valuations brought on by rising inflation. In Q3, global inflation was even more of a problem. At the end of June, Fed Fund futures indicated that the Fed Fund’ …