Investment Opportunities

Why Consider This Strategy?

The combination of low yields and potentially rising interest rates has created a challenging environment for long-only fixed income investors, AND

The U.S. equity market continues to make all time highs as it extends its unprecedented 8-year bull market


Fixed Income Market Concerns

Bond bull market began in June 1981

10 year rates are near historic lows

We believe bonds are a crowded trade

Interest rates trend for decades

Tail wind may now become a headwind



Equity Market Concerns

Unprecedented 8-year bull market continues

Shiller P/E ratio* at about 29x vs. a historical average of about 17x


* The Shiller P/E, or cyclically adjusted price-to-earnings ratio, commonly known as CAPE, is a valuation measure usually applied to the US S&P 500 equity market. It is defined as price divided by the average of ten years of earnings, adjusted for inflation. Past performance is not indicative of future results.


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