Why 2%

Projecting the trajectory of interest rates is about as arbitrary as how the Fed (FOMC) decided to make 2% its official inflation target. How and why did the U.S. central bank set that target? Could it change? Click here to read more about the history of the Fed and it’s monetary policy decisions.

In Venture Capital, It’s a Mean Game

Successful Venture Capital requires exposure to the statistical outliers. This typically means allocating more capital to funds that are smaller, more concentrated, and may be run by managers with limited track records. As a result, VC may not be suitable for every investor. Click here to read more about how we view the asset class and approach portfolio construction for patient capital.

A Christmas Wish

There is one gift under the SineCera Christmas tree this year. Only one box, and I’ll let you in on a secret: the box is empty.

This wrapped package symbolizes the one thing you want most this year.

Connee SullivanDecember 6, 2023

The Wealth Transfer Underway Now

Much has been written about the Great Wealth Transfer, with more than $60 Trillion expected to pass from one generation to another over the next twenty years. But there is another significant wealth transfer already underway: the one involving the death of a spouse.

Connee SullivanOctober 24, 2023

Uneasy Lies the Head – When Cash is King

Higher for longer remains the topic du jour when discussing Fed policy. But how much higher? And how much longer? For clients who are currently sitting in the “safety” of cash, click here to learn why we think bonds, relative to cash, may make more sense both as a recession resilient asset and as a long-term investment holding.

The Illiquidity Premium Problem

The illiquidity premium has nothing to do with holding period. Rather, it exists in areas where capital is less abundant. Lately, however, there’s no shortage of cash flowing into private investments as retail and institutional investors alike have upped their deployment into venture capital and private equity. Fortunately, it’s not too late to find opportunities, as long as investors’ remain judicious and follow a disciplined process.

The Hardest Thing to Do Right Now

In normal down markets, it’s usually easy to see why diversification matters. But in the current environment, shaped by rapidly rising interest rates, we’re seeing both stocks and bonds underperform. No matter how many historical precedents argue against the inclination, it’s easy to want to uproot one’s current portfolio. Read more to understand why that’s generally not a good idea.

Mind The [Tax] Gap

Over the next ten years, roughly $7 trillion in unpaid taxes will go uncollected. In that regard, the Inflation Reduction Act seems rather conservative in its estimate of being able to close that tax gap by $124 billion, right? One can only hope that $80 billion in new funding will help fix the IRS’ inefficiencies, but there’s still a real, and large, economic cost borne by taxpayers.

Investing & Self-Worth

When evaluating our investments, behavioral finance offers insight into why we often stick with the status quo. Even when underperforming, many investors, including sophisticated ones, tend to stick with strategies that are too risky, too expensive, or too often try to time the market. Read our latest blog post about how the Endowment Effect and self-efficacy affect everyday investment decisions.

The Uncorrelated Mind