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Category : Newsletter

Fed Liquidity, PE Ratios and the Economy – Entasis Newsletter 2Q2020

Click Here for a PDF of the Newsletter Newsletter Summary The impact of Fed liquidity on sentiment in the second quarter was staggering and it has opened some amazingly wide gaps among sub-asset classes. Our research work lists are full. PE ratios tend to have a rather weak correlation to future stock prices over the short-term, but become a much more constructive tool to project return environments over longer periods. While some economic data suggests a rebound is underway, analyst […]

Key Market Drivers, Earnings and Bond Pricing – Entasis Newsletter 1Q2020

Click Here for a PDF of the Newsletter Newsletter Summary From a high level, we are always focused on a few key items: economic growth, interest rates and earnings. We believe that with an understanding of changes in those key variables we can develop a solid foundation for asset allocation decisions and fundamental investment decisions. We never try to be surgical with the timing of our investment decisions. We believe that if we can be directionally correct on a consistent […]

Catalysts, Earnings and the SECURE Act – Entasis Newsletter 4Q19

Click Here for a PDF of the Newsletter Section Summary Market Notes – Equity and fixed income markets broadly moved higher during the fourth quarter, primarily driven by an accommodative U.S. Federal Reserve and signs of progress in the U.S. and China trade spat. On the economic front, news was mixed, but most investors focused on strong U.S. consumer data that they hoped would prop up tepid U.S. GDP growth and overcome softness in the U.S. manufacturing sector. Equity & […]

Focus, Cycles and Profit Margins – Entasis Newsletter 3Q19

Click Here for a PDF of the Newsletter Section Summary Market Notes – Markets were somewhat of a roller coaster in the third quarter as threats and reconciliation around trade impacted investor sentiment. In addition, investors remained highly sensitive to announcements from the U.S. Federal Reserve around interest rates and the pace of corporate earnings growth. The uncertainty was balanced by still low unemployment levels, which have fueled consumer spending growth. Equity & Fixed Income Comments – Our portfolio positioning […]

Foreign Small-Caps, Looking Forward Looking Back, and Corporate Earnings – Entasis Newsletter 2Q19

Click Here for a PDF of the Newsletter Section Summary Market Notes – Markets were broadly positive in the second quarter, but fairly volatile month-to-month. The key factors driving market activity were anxiety over trade tensions and optimism that the Fed would cut interest rates to support the economy. Equity & Fixed Income Comments – Our portfolio positioning in the equity and fixed income components of client portfolios reflects our relatively cautious outlook for U.S. equities and U.S. corporate bonds. […]

Big Reversals, The Yield Curve and Home Country Bias – Entasis Newsletter 1Q19

Click Here for a PDF of the Newsletter Section Summary Market Notes – Early in the quarter (January 4) Fed Chairman Jerome Powell stressed that the Fed would not hesitate to respond with all tools necessary to counteract an economic downturn or increased turmoil in financial markets. As a result of the about-face by the Fed, many areas of the financial markets that had posted significant losses in the fourth quarter of last year, rebounded strongly in the first quarter. […]

Corrections, Market Timing Risks and The Value of Valuation – Entasis Newsletter 4Q18

Click Here for a PDF of the Newsletter Section Summary Market Notes – Fourth quarter returns across all global equity markets were broadly weak. Conversely, fixed income markets generally held up well. A combination of factors drove the volatility in equity markets, but slowing economic growth, concerns about future profit growth and interest rate uncertainty highlighted the list. Equity & Fixed Income Comments – Our portfolio positioning in the equity component of client portfolios has been focused on bolstering the […]

Diversification, Overconfidence and Divergent Results – Entasis Newsletter 3Q18

Click Here for a PDF of the Newsletter Section Summary Opportunity & Nerve – If we can assess the valuation opportunity of investment alternatives with discipline, nerve is replaced with trust in our work. Market Notes – Returns across asset classes diverged considerably in the third quarter, continuing a trend building throughout the year, as emerging market pressures intensified and interest rates pushed higher while corporate earnings growth remained strong. Equity & Fixed Income Comments – For the most part, our broad […]

Emerging Markets, Performance Swings and Hard Decisions – Entasis Newsletter 2Q18

Click Here for a PDF of the Newsletter Section Summary Decisions – Is it transitory or secular? The hardest decisions we make as investors are the ones we make when things don’t go perfectly. Market Notes – Returns across asset classes varied considerably during the second quarter as a strong U.S. dollar, fear of trade wars, weakness in emerging markets, political instability in Europe, strong U.S. corporate earnings growth and improved U.S. economic growth left markets uncertain about future direction. Equity & […]

Volatility, Infrastructure and the Definition of Normal – Entasis Newsletter 1Q18

Click Here for a PDF of the Newsletter Section Summary Market Axioms – Stick with big, “easy” decisions and eschew activity. Performance comes, performance goes. Fees never falter. (Limit them.) Market Notes – Markets hate uncertainty. During the first quarter, the markets were presented with the uncertainty of a new Fed Chairman, a potential trade war with China, due to steel and aluminum tariffs, and political stress impacting the technology sector on several fronts. Equity & Fixed Income Comments – Within our […]