Q: Hi Peter and Team,
The March 21st issue of the Globe & Mail had an interesting article called 'Give peace - and bonds - a chance'.
My feeling is that the war cannot go on much longer, and Trump will be compelled to 'claim victory' even though Iran still seems to have the upper hand in their blockade of the Strait. Perhaps it's true what the US underground bombing of an Iranian facility in the Strait very recently stated "We not only took out the facility, but also destroyed intelligence support sites and missile radar relays that were used to monitor ship movements," Admiral Brad Cooper, commander of US Central Command (Centcom) says in video message posted on X."
It occurs to me that it's extraordinarily difficult to follow one's portfolio with any degree of certainty now that economics and politics are so completely linked.
What's your take on David Berman's thesis, and the ZAG ETF he refers to.
Thanks as always for your insight, especially in these difficult times.
The March 21st issue of the Globe & Mail had an interesting article called 'Give peace - and bonds - a chance'.
My feeling is that the war cannot go on much longer, and Trump will be compelled to 'claim victory' even though Iran still seems to have the upper hand in their blockade of the Strait. Perhaps it's true what the US underground bombing of an Iranian facility in the Strait very recently stated "We not only took out the facility, but also destroyed intelligence support sites and missile radar relays that were used to monitor ship movements," Admiral Brad Cooper, commander of US Central Command (Centcom) says in video message posted on X."
It occurs to me that it's extraordinarily difficult to follow one's portfolio with any degree of certainty now that economics and politics are so completely linked.
What's your take on David Berman's thesis, and the ZAG ETF he refers to.
Thanks as always for your insight, especially in these difficult times.
5i Research Answer:
We woud generally agree with this sentiment, with the biggest issue being if 'mission accomplished' is declared in a week or 3 months. As we can see today even, the timelines gyrate on a daily basis. It can be more difficult when markets are in the middle of whatever risk event but zooming out and thinking longer term has tended to be the best approach over the long-term and perhaps moreso over the last two years even.
On ZAG, as an aggregate bond ETF yileding 3.3% and being well diversified, we wouldn't really have much issue here for something offering a bit of safety and some potential for gains if/when geopolitical and economic slowdown risks (due to oil) begin to subside.