The 60/40 Portfolio Problem
My colleague, Brandon Langley, and I began writing about the pitfalls of a traditional 60/40 portfolio back before it was trendy. He and I felt so strongly about the topic that we published a white paper in August of 2018. Some considered us renegades back then for having the audacity to question what had been…
Read MoreThe 2020 Remix: Trend Following & Pop Culture
At Blueprint Investment Partners, we like to think that our trend-following proclivities have many applications. Some (like our ability to systematically manage assets for our advisor clients) are certainly more useful than others (like the fresh 2020 pop culture reference that will come when you read on). We’re not above keeping on the pulse of…
Read MoreESG Investing: How It’s Going in the Real World (Part 3)
You may have seen or heard about the, “how it started…how it’s going,” trend that’s been going around the internet lately. The concept is to show the passage of time in two images, often to highlight accomplishments and sometimes purely for comedic value — you’ll find examples of each in this post. In this blog,…
Read MoreESG Investing: Driven by Risk Management & Client Demand (Part 2)
There’s been a paradigm shift in our recent conversations with financial advisors about ESG investing. Whereas ESG investors previously were thought by some to be anti-capitalist tree huggers, this silly trope has run its course. Instead, there is a realization that optimal management of resources, social equity, and ethical corporate administration can significantly benefit human…
Read MoreYou Can’t Win a Tournament in Round 1, But You Sure Can Lose It
Haters who know I bleed “Carolina Blue” will accuse me of taking a cheap shot with the story I’m about to retell. But when the world of sports rivalries intersects with managing risk in an investment portfolio, it seems unreasonable to ask me to not make the following comparison! The year was 2012. The team…
Read MoreESG Investing: On Par With Value, Growth, or Momentum? (Part 1)
“[B]ecause capital markets pull future risk forward, we will see changes in capital allocation more quickly than we see changes to the climate itself.” And just like that, Larry Fink, CEO of BlackRock, potentially changed everything. This quote is taken from his letter to CEOs in January, where Fink argues that climate change is the…
Read MoreThe Irrationality of Humans, Investors, And…Watch-Buyers?
My husband recently nearly talked me into purchasing his definition of “a decent” wristwatch — and it was a reminder of how we, as humans, are completely irrational. My thinking on watches is simple: What’s wrong with the classic, battery-powered quartz watch I’ve had for years? It has fewer parts, I don’t have to send…
Read MorePredicting The Future
When something happens that has never happened before, do we assert it was unpredictable? Monday the front month contract for WTI crude oil went negative in price and traded there, as holders attempted to get rid of the obligation to take delivery. How much can I pay you to take my oil? Amazing. Times like…
Read MoreThe New 20-Year Stock Chart
The last 20 years have given us three major market shocks. These resulted from the end of a tech bubble, a financial crisis and now, a global pandemic. During this time, investors have experienced numerous emotional highs and lows, yet in general, the approach to investing delivered by the financial services industry has not fundamentally…
Read MoreCommunication At A Distance
First, I sincerely hope this note finds everyone safe and healthy in your world. We are grateful to be here to serve our clients and friends. To paraphrase the line from the movie “Cool Hand Luke,” my Co-Founder Brandon Langley and I will not be accused of a “failure to communicate!” On the last trading…
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