Bringing clarity, confidence, and purpose to our conversations.
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.
Read MoreIn 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.
Read MoreWhen 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.
Read MoreThe behavioral biases that cause us to ignore overwhelming odds and fill out March Madness brackets are innate. They’re also the same traits that lead to illogical investment decisions. Learn more about how the Affect Heuristic and the Illusion of Validity influence our investment decisions in the same way they make us cheer on underdogs, and root for teams we may have never followed before.
Read MoreWe’re not in the business of making forecasts at SineCera Capital. Rather, we’re focused on building a risk-balanced portfolio that we think serves our clients well without relying upon any market predictions. Understandably, we were quite happy with how our All-Weather Core portfolio performed in 2020, but knew that the law of averages could come into play in 2021. So how to our risk-balanced portfolio do? Better than we initially expected.
Read MoreWhile some LPs may applaud Sequoia’s move to consolidate investments into an open-ended vehicle, blurring the lines between what makes a private market and public market manager successful may only lead to disappointing results.
Read MoreWhy has the market’s reaction to the Fed’s plan to reduce its current bond buying program been so different than the “taper tantrum” of 2013? It’s odd to recall that following the Financial Crisis many viewed the Fed’s balance sheet as too large. Oh, if they could see it now! The power of hindsight may have tempered investors’ concerns, but don’t get complacent.
Read More“What percentage of my portfolio should be allocated to alternative investments?” To answer this, many allocators turn to the “Endowment Model” as a guide. Unfortunately, for the high-net-worth investor with unique needs and preferences, the Endowment Model isn’t a one-size-fits-all solution. And unlike public market investments where you can quickly deploy capital, alternative investments require an active liquidity management strategy to balance target allocations. This article talks about a few key points to consider when committing to illiquid private market investments.
Read MoreAfter reviewing thousands of prior investments, financial advisors often develop a good “feel” for what sets a good deal apart. However, experience and common sense analysis is simply not enough. It certainly helps, but where’s the accountability in that? At SineCera Capital, we’ve established written policies and best practices that cover both the art and science of investment due diligence.
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