Corporate Bond spreads (additional yield over comparable US Treasury) have done a near full reversal from the wides reached in January (+147). Today (+104) we are very close to the tight spreads reached last year (+99*). The reversal brings our 2019 Theme #5 “CEO/CFO...read more
We are nearly through the first quarter and it’s time to check the market’s pulse. The core of our thesis around heightened volatility in 2019 rests on the view that we are coming off a period of money being priced below its natural rate. The artificial rate...read more
The direction of interest rates and the shape of the yield curve are key determinants of returns in the fixed income markets. This will be no different in 2019. The interest rate volatility experienced in 2018 will likely be repeated in 2019 as markets determine the...read more
As we closed out 2018, a fair amount of our time was spent looking into 2019; discussing the themes that we thought would drive markets. This discussion helped narrow down a list of what we felt commanded focus.read more
“The secret of change is to focus all of your energy, not on fighting the old, but on building the new.” – Socrates.
Inspired by my 27-plus years of investment experience, my principal motivation for founding Smith Capital Investors is a strong desire to build something new. Deep seated in this desire are the three focuses that have had the greatest influence on my career—Investing, People, and Culture.read more