Investment Strategy & Market Outlook - The firm maintains a neutral stance on stocks and bonds, balancing potential bubble risks with strong underlying fundamentals [5] - The portfolio emphasizes diversification, with an overweight position in international value and small-cap stocks [5] - The firm is short duration, indicating reduced sensitivity to interest rate changes, achieved by holding fewer long-term treasuries [5][6] Inflation & Interest Rate Risks - The firm anticipates potential upside risks to inflation, citing factors like wage growth, housing shortages, and commodity price volatility, in addition to tariffs [6] - Deficits could exert upward pressure on the 10-year Treasury yield, contributing to the underweight duration strategy [7] Decision Making & Investment Psychology - Sports psychology highlights the importance of differentiating between luck and skill, especially during periods of speculation [2] - Investors should focus on the quality of their decisions, separating outcomes from the decision-making process [4]
How Lessons in Sports Psychology Can Help Investors
The Wall Street Journalยท2025-08-05 17:01