Author: bbatchelor

Tax Management, Labor Shortages and Inflation – Entasis Newsletter 3Q2021

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Newsletter Summary

  • Tax management should not be a substitute for portfolio management. Tax avoidance can potentially lead to gain avoidance.
  • We believe one of the most effective ways to protect portfolios from inflationary risks is to buy cheap assets. In our view, these are assets that may have been (or continue to be) out-of-favor with investors for one reason or another, and therefore, have depressed prices when viewed in relation to their future earnings or growth potential.
  • Taking everything into consideration, we believe interest rates continue to drift higher with the U.S. Treasury yield curve steepening (the spread between short- and long-term interest rates growing wider). As a result, we continue to position client portfolios to have less interest rate risk than our internal benchmarks.

Lessons, Speculation and Economic Recovery – Entasis Newsletter 2Q2021

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Newsletter Summary

  • History has shown us that over time clients will be better off if we patiently manage risk in a way to participate strongly in market rallies while doing a better job defending client capital as markets inevitably recede for a time.
  • Many traditional stock valuation measures have become stretched.  This has led to questions about the veracity of these metrics and their potential impact on future market returns.
  • Despite regional outbreaks of COVID-19, the global recovery is on track. With global activity measures improving, forecasters expect the global economy to expand by 5.8% in 2021.

Parasailing, Risk Management and Reopening – Entasis Newsletter 1Q2021

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Newsletter Summary

  • As it turns out, parasailing is quite peaceful, but new market perspectives are not always as calming.
  • Experience has taught us that maximizing risk to maximize return is fraught with pitfalls when managing portfolios for the long term.
  • The pandemic has forced a fundamental transformation of our economy. Once the economy is fully reopened, and the easy comparisons to last year roll off, the outlook becomes more challenging.