Michael Burry’s abrupt exit from GameStop highlights a sharp shift in sentiment that wealth advisors and RIAs should closely evaluate, particularly as corporate strategy risk increasingly influences equity narratives.
The equal-weighted allocation across equities, fixed income, cash, and commodities is tracking a 26% return year-to-date, positioning it for its best annual outcome since 1933, according to strategist Michael Hartnett.
The traditional investment management toolkit—60/40 portfolios, private credit, cash—was built for a market environment that no longer exists. Focus Point Capital’s Caleb Sevian argues that since the pandemic, macro forces have become the dominant driver of portfolio returns, and most allocations haven’t caught up. His solution is a hybrid, risk-managed strategy designed to participate in upside while systematically reducing exposure when conditions deteriorate—liquid, transparent, and built around a single, enduring mandate.
International equities have posted strong returns of late, but Schafer Cullen’s Pravir Singh argues the opportunity is far from exhausted. With U.S. portfolios concentrated in AI-driven tech stocks, Singh explores why valuation discounts persist abroad, where global competitive advantages reside, and why active management matters more than ever in dividend-focused international strategies. From currency dynamics to political risk assessment, Singh outlines a multidimensional case for ex-U.S. exposure.
In the spirit of “Message in a Bottle” we are sending out an S.O.S. for investors who have negotiated an extremely tough quarter. It gets better.
The outcome of the U.S. midterm elections could also impact market sentiment as we close out the earnings reporting season in November.
We continue to be defensively positioned, with all strategies holding at least a third of their value in cash and cash-like securities as we wait.