StrongVest Insights

Words of financial wisdom from the StrongVest team

Tag: Bonds

Planet of the Apes

by Lewis Johnson, Sub-Advisor, Co-Chief Investment Officer at Capital Wealth Advisors // May 31, 2018

“All my life I have awaited your coming and dreaded it, like death itself.” —Dr. Zaius in Planet of the Apes (1968) “The Forbidden Zone was once a paradise; your breed made a desert of it…” —Dr. Zaius in Planet of the Apes “Taylor: There’s got to be an answer to it [to how humans...

The Humiliation Machine: Take the Risks That You Get Paid to Take

by Lewis Johnson, Sub-Advisor, Co-Chief Investment Officer at Capital Wealth Advisors // Feb 22, 2018

Chief Conclusion: The market is a humiliation machine. When you are being the most rational, the market makes you look the most stupid. This is not a bug, it’s a feature. Why? Because the rational pursuit of investments with the least risk and highest reward will lead you time and again to invest in opportunities...

Feed the Ducks While They Are Quacking: Time to Reduce Lower Quality Bond Positions

by Lewis Johnson, Sub-Advisor, Co-Chief Investment Officer at Capital Wealth Advisors // Jan 25, 2018

Chief Conclusion: Clients will begin to see a thoughtful winnowing of our selected holdings in corporate bonds rated less than investment grade. The relentless search for yield has resulted in a dramatic reduction in the premium that investors once earned by taking more credit risk. The good news is, investors in this lower quality asset...