Consensus growth expectations caught up to ours and global earnings jumped — but the magnitude of
asset returns surprised us.
Not exact matches
Private firms like Amur have proliferated in the past few years, which is hardly a
surprise, given that Canada's stubbornly low interest rates have pushed investors into alternative
asset classes, and residential real estate has generated stunning
returns for investors and homeowners alike.
In the spring of 2001, to the
surprise of his colleagues, Seo left his big Wall Street firm and opened a hedge fund — which, he announced, wouldn't charge its investors the standard 2 percent of
assets and 20 percent of
returns but a lower, flat fee.
This portfolio rebalancing fits with our
asset preferences based on our outlook for global growth, even if the fast pace of
returns has
surprised.
In a really large crisis, the
return on risk
assets may look decent from ten years before to ten years after, but a lot of people get
surprised by their need to draw on those
assets at the wrong moment — bad events come in bunches, when the credit cycle goes bust.
A potential
surprise: A rally in risk
assets prompted by investors shifting out of cash and low - yielding
assets in search of higher
returns.
By looking at the
asset allocation of the portfolio, it doesn't really
surprise me why it outperformed the S&P by 18 %: 40 % of the portfolio's
assets are invested in Treasury securities, the highest among 8 Lazy Portfolios, with three funds: VFITX (YTD
return 11.34 %), VFISX (YTD
return 6.27 %) and VIPSX (YTD
return -4.14 %).
With high
returns on
assets and a low P / E it is not
surprising that Garmin shows up on Joel Greenblatt's magic formula investing site for the top 30 companies with a market cap over a billion.
As such it is not
surprising that bond prices have fallen, which results in higher bond yields, lifting
returns for bond purchasers on this very low risk
asset class.
Joey Mack will provide some
surprising facts about bond market
returns, and provide guidance over how investors can participate in the top performing
asset classes in Canada.
When actual
returns obtained from owning a superior
asset class is so poor, it isn't
surprising that for most people, their home turns out to be the «best investment».