INSIGHTS & THOUGHT LEADERSHIP

REDWOOD BLOG | Apr 16, 2018

The Million Dollar Question

The Million Dollar Question Craig Basinger, Chris Kerlow, Derek Benedet, Shane Obata All you really need to know is whether or not there will be a recession in the next six months. Ok, that is an exaggeration but bear with us. Since about 1950, the average monthly return for the S&P 500 is about 0.7%. […]

REDWOOD BLOG | Apr 9, 2018

Cracks in the Foundation are Widening

Cracks in the Foundation are Widening Craig Basinger, Chris Kerlow, Derek Benedet, Shane Obata Canadian houses have caught the eye of global investors following decades of consistent growth and all but a slight decline during the great recession. Then as home prices started catching fire, foreign money started pouring in, leading to provincial governments in […]

REDWOOD BLOG | Apr 2, 2018

Energy Not Adding Up

Energy Not Adding Up Craig Basinger, Chris Kerlow, Derek Benedet, Shane Obata A barrel of oil, West Texas Intermediate, currently fetches $65 per barrel, that is a fairly decent price looking back over the past three years. Brent is closer to $70. Still a far cry from $100+ price prior to mid-2014 but also materially […]

REDWOOD BLOG | Mar 26, 2018

Two Months Into the Bear?

Two Months Into the Bear? Craig Basinger, Chris Kerlow, Derek Benedet, Shane Obata We don’t think so, but we do admit it is possible. Starting first with economics, the world often does not know it is in a recession until many months after it starts. A recession is commonly defined as two consecutive quarters of […]

REDWOOD BLOG | Mar 19, 2018

Active Beat Passive in 2017?

Active Beat Passive in 2017? Craig Basinger, Chris Kerlow, Derek Benedet, Shane Obata Sacrilege, right? Over the years, have we not been taught that actively managed funds simply don’t stand a chance against the index? Well something happened last year. According to the U.S. SPIVA report, 63% of domestic funds underperformed the index last year. […]

REDWOOD BLOG | Mar 12, 2018

Avoiding Mistakes

Avoiding Mistakes Craig Basinger, Chris Kerlow, Derek Benedet, Shane Obata If you believe most marketing material, it would be easy to come to the conclusion that great ideas are the primary driver of investment performance. Examples of how a manager uncovered great companies trading at a discount or ones who made a big profitable macro […]

REDWOOD BLOG | Mar 12, 2018

What makes a market “emerging”?

Emerging markets have their origins in the 1980s. Today, a professional investor probably thinks they have some idea what an emerging market is. On the other hand, an inquisitive lay person with a few pointed questions quickly unravels the lariat: why is Korea an emerging market? Why is Nigeria not? Most emerging market investors would […]

REDWOOD BLOG | Mar 5, 2018

Being Contrarian

Being Contrarian Craig Basinger, Chris Kerlow, Derek Benedet, Shane Obata We all know there is safety in numbers. It’s more comforting being part of a group that thinks or behaves in a similar fashion. Just look at your friends: you probably have more similarities than differences. Otherwise you might not get along as well. Many […]

REDWOOD BLOG | Feb 20, 2018

Expectations Are Inflating

Expectations Are Inflating Craig Basinger, Chris Kerlow, Derek Benedet, Shane Obata The U.S. Federal Reserve has a dual mandate of targeting 2% inflation and maximum employment. They are doing a great job of achieving their employment goal with only 4.1% of Americans looking for a job and not being able to find one. However, targeting […]

REDWOOD BLOG | Feb 14, 2018

The Bell Has Been Rung

The Bell Has Been Rung Craig Basinger, Chris Kerlow, Derek Benedet, Shane Obata ast week we wrote a piece titled “Hey Equity Markets, Bond Yields Toll for Thee.” Well, bond yields tolled alright, and equity markets found their bell rung in terms of handling rising bond yields. The U.S. ten-year topped out twice last week […]