In the first half of 2018, the real estate sector had modest returns, trailing the performance of the S&P 500. Fundamentals remain strong along with liquidity, and we see no imminent sign of a downturn for the remainder of 2018. Despite our optimism, there are a few potential headwinds that we are watching including a...Read More
We are approaching the second half of 2018 positioned for higher interest rates and flat-to-tighter spreads. Our focus continues to be on income generation and maintaining a yield advantage relative to the benchmark.Read More
Boyd Watterson believes that advisors and consultants should keep their clients invested through the cycle to increase the likelihood that long-term investment objectives are achieved. We design our moderate beta strategies with this understanding in mind.Read More
The economic growth story remains for 2018, with inflation increasing at a measured pace. Additionally, corporate earnings growth rates are high, warranting an overweight to corporate credit in our view.Read More
The Fed has communicated that it anticipates raising the federal funds rate three times in 2018, while the futures market implies only 2.5 hikes and many investors are calling for four moves. We fall into the three-hike camp.Read More
Many private real estate strategies are set up as closed-end vehicles, a type of fund structure that can expose investors to “vintage risk.” Vintage risk is the risk that a large portion of a real estate fund’s properties are acquired during a period of high prices, making it difficult to sell them for a gain...Read More
For several years, we have referred to the US economy as a “caterpillar” economy. Since the 2008 Great Recession, the economy has inched along, alternately accelerating and decelerating, as it continues to steadily gain ground. For 2018, we foresee another year of caterpillar-like growth.Read More
The challenges of the current low-yield environment call for investing strategies beyond conventional rising-rate investment solutions. Fixed Income investors seeking higher income, principal protection, and risk mitigation should consider diversifying their bond holdings with a portfolio of low-duration, mid-grade securities.Read More
