Insights
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White paper: Trend Following and Tail Risk
An introductory understanding of how trend following can manage tail risk.
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Navigating Fixed Income Markets in 2025
At Kensington Asset Management, we’ve actively managed fixed income solutions for clients for over three decades. Throughout this journey, we’ve weathered all types of macroeconomic regimes from extreme market volatility events to periods of steady growth.
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Everything is Expensive
In the current market landscape, it’s becoming increasingly clear that “everything is expensive.” Elevated valuations across both US equity and fixed income markets underscore the need for caution and adaptability. In the current market landscape, it’s becoming increasingly clear that “everything is expensive.” Elevated valuations across both US equity and fixed income markets underscore the need for caution and adaptability.
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In the Wake of Fed Rate Cuts
Just over a month has passed since the Federal Reserve’s rate cut on September 18th, and something unusual is happening in the Treasury markets. Despite the reduction in the benchmark rate, yields are continuing to rise across maturities.
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Navigating Uncertainty Amid Market Opportunities
Q3 earnings season kicks off this week with the S&P 500 expected to deliver a solid 4.2% year-over-year growth rate (chart below).
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Balancing Inflation and Employment
Last week, the Federal Reserve held its September Federal Open Market Committee (FOMC) meeting, where it made a somewhat surprising move by cutting the target range for the federal funds rate by 0.50%, bringing it to 4.75%–5%.
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Decoding the Fed’s Next Moves
This week’s CPI report provided the final inflation reading ahead of the September Federal Open Market Committee (FOMC) meeting, where Chairman Powell and the Committee are expected to lower interest rates for the first time since the rate-hiking cycle began in March 2022.
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Adapting to Rate Cuts
Last week at the Jackson Hole Economic Symposium, Federal Reserve Chairman Powell seemingly confirmed a September rate cut, indicating, “The time has come for policy to adjust.”
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Market Concentration’s Double-Edged Sword
For the past 18 months, the U.S. stock market has been defined by increasing concentration to a very small number of mostly technology related companies, fueled by the “AI trade” pushing the S&P 500 to hit 38 new all-time highs through July. But concentration can cut both ways.
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A Breadth of Fresh Air
The first half of 2024 for U.S. equity markets, particularly large caps, has been defined by advancing indices with very limited breadth. Of the 11 sectors that make up the S&P 500, only two have outperformed the index over the past year (chart below): Technology and Communication Services (which is technology-heavy).
