Markets are pricing one-year inflation at 3.3%, above the Fed’s 2% target signaling pressure on interest rates, bond yields and equity valuations. Rising inflation can erode real returns and reshape valuations, forcing investors to reassess risk. For long-term investors, the takeaway is not to react hastily but to remain attentive to the implications. These implications influence portfolio positioning across asset classes. Staying proactive today, positions investors to navigate evolving risks while capitalizing on opportunities through the economic environment.
The Calculus of Value | Memos from Howard Marks
This insightful memo stresses that markets often move on sentiment, not fundamentals. Discipline, not momentum should guide long-term investing.
“Because of the key role of psychology plays in setting asset prices, in order to have a sense for where price stands relative to value, investors should try to gauge prevailing psychology, not just quantitative valuation parameters.”
How Common Knowledge Shapes the World | TedTalks
Common knowledge is the secret engine of social life, letting us coordinate everything from meetups to markets to international diplomacy. In this fascinating talk, cognitive scientist Steven Pinker explores this idea with wit and wisdom.
How the Global Landscape is Reshaping Canadian Investment Opportunities
With trade tensions and higher interest rates reshaping the landscape, Canadians ought to position themselves towards alternative sectors that are set to define future growth.
“Conventional portfolio construction fails to account for the specific challenges facing Canadian investors this year. The traditional 60/40 stock/bond allocation requires significant modification to thrive in current conditions.”
Oaktree’s Co-Chairman Says Stock Hinting at ‘Early Days’ of a Bubble
US equities are showing the early signs of froth, with Marks cautioning that valuations resemble the late-1990s. While a correction isn’t imminent, the gap since the last reset suggests investors should prepare for a market pullback.
“I’m certainly not ringing the alarm bells. The point is that things are expensive,”
Notes to the Future | Joy Lere
The lasting lessons in persistence and positioning tie into the discipline required to investing in the markets.
“Our brains respond to future self-images almost the same way they respond to pictures of complete strangers. When a child (or an adult) can’t feel connected to tomorrow’s version of themselves, it’s no surprise that today’s discomfort looms larger than tomorrow’s reward.”
Lauer Private Wealth at RBC serves as the investment office for a select group of institutions and families. The practice is centered on multi-asset portfolio management, estate structuring, and intergenerational wealth architecture.
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Works cited: Apollo, Bloomberg, ChatGPT, Finding Joy, Forbes, Oaktree, TedTalks, The Daily Spark.