The Perry Capital Portfolio is conservative. It always has been and certainly is now. Perhaps too much so. It
holds 62.5% in the Money Market, earning a risk-free 5.18%, with an additional 15% in T-Bills which have an average guaranteed return of 5.25%.
“People are listening to narrative and not paying attention to data.” Read More »
60% of the Perry Capital portfolio yields 5.09% with principal guaranteed. I sold my short 25% Treasury
positions
lower.
Everything I own is up in 2023. But I’m not that good. Most asset classes are up. This tells me there is too much
money around. The Fed should know this and hike.
“The space between the tears we cry is the laughter – keeps us coming back for more.” Read More »
75% of the Perry Capital Portfolio remains AAA-rated, very short maturity, and very liquid securities.
I remain underweight in the equity market because the valuation metrics of risk assets are not discounting for
persistent inflation, higher funding rates, and a slowing economy to the degree necessary to be attractive.
“Never in the field of human conflict was so much owed by so many…” Read More »
75% of the Perry Capital Portfolio remains in AAA-rated, very short maturity, and very liquid securities.
I remain underweight the equity market because the valuation metrics of risk assets are not discounting for
persistent inflation and a slowing economy to the degree necessary to be attractive. I would rather watch from
the sidelines at 5% until the strategic risk/reward is in my favor. I must say, though, that the Nasdaq 100 (QQQ)
performance y-t-d is impressive. Perhaps A.I. is a paradigm shift as impactful as the internet.
“The problem with leverage is that you have to pay it back.” Read More »
75% of the Perry Capital Portfolio remains in AAA-rated, very short maturity, and very liquid securities.
I remain underweight the equity market because the valuation metrics of risk assets are not discounting for
persistent inflation and a slowing economy to the degree necessary to be attractive. I would rather watch from the sidelines at 5% until the strategic risk/reward is in my favor.
“Politicians are like bad horsemen who are so preoccupied with staying in the saddle…” Read More »
75% of the Perry Capital Portfolio remains in AAA-rated, very short maturity, and very liquid securities.
I remain extremely underweight the equity market because the valuation metrics of risk assets are not
discounting for persistent inflation and a slowing economy to the degree necessary to be attractive.
“To contract new debts is not the way to pay old ones.” Read More »
5% of my T-Bill exposure matured. My proceeds were a tiny portion of the $508b that migrated to money
market funds in the first quarter. The “Liquid” portfolio position remains at 50%.
“If someone tells you that you are the smartest person in the room…” Read More »
I bought more bonds in the portfolio. Finally, the future is less murky. Recession odds have increased dramatically.
“The problem with the world is that the intelligent people are full of doubts, while…” Read More »
I remain 75% in liquid cash investments, which have a guaranteed yield to maturity of 4.625%. Given recent
events, and the expectation of forthcoming stimulus, volatility remains extremely elevated, sentiment is
schizophrenic, and investors are fearful.
“Capitalism without failure is like religion without sin. It does not work.” Read More »
Be patient and remain defensive. I suspect that most assets you might be interested in buying will be available
at lower prices.
Volatility is extreme. Risk remains elevated. Demand-driven inflation is accelerating. The cost of money is
rising. Valuations of risk assets are vulnerable. Be patient and remain defensive.
“Remember that how you say something is as important as what you say.” Read More »
I am not fighting the Fed and expect funding rates to rise higher than the markets expect and for them to stay
higher for a longer period than the market expects. I also recognize that liquidity and momentum models may still
encourage large and sophisticated derivative trading which can propel risk assets higher.
“The whole art of war consists of guessing at what is on the other side…” Read More »
50% of the Perry Capital portfolio is in the money market.
remains at 25% of portfolio assets. 3-month T-Bills now pay 4.63%, 6-month T-Bills pay 4.81%. Long Treasuries
“Judging by the price action in markets over the past couple of months…” Read More »