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A carry trade is when you borrow money and use it to make another investment that you believe will be more profitable than the costs associated with borrowing. In the case of the Japanese yen carry trade, participants with the intention of investing in the U.S. will borrow money at low interest rates in Japan, convert the local currency (yen) to U.S. dollars, then invest those dollars in an asset or assets in the United States they believe will earn more than the cost of the loan in Japan. Assuming currency exchange rates are stable, the math is really quite…

One of the reasons we formed Cadence back in 2010 was to rid ourselves of the embedded conflicts of interest that are inherent in large, profit-seeking public firms. I’m not suggesting that profit-seeking is bad, after all, it makes our economy go, jobs available, and is a genuinely positive aspect of the American way of life. But what we see every day working in financial markets is that there are immense pressures put on public companies by shareholders and Wall Street to increase profits quarter after quarter to fuel rising stock prices. Stock options within public companies, in many cases…

When you hold as many meetings each year as we advisors do, you can gain a perspective at times on the general mood out there.  After years of COVID protocols, inflation, and a seemingly ever worsening political climate, to name a few, it is understandable if you are one of those feeling a general sense of malaise right now.  We’re hearing about it on a very regular basis these days.  Though it may be difficult or impossible to take action that will affect the large forces that feel like they are moving against you, taking action on things you actually…

There is no such thing as a “market” crystal ball, or a perfect indicator, measure, or data point, but if we were to pick one tool from our “market conditions toolbox” to give us a sense of potentially imminent risk present in the stock market and broader financial system, it would probably be the Hindenburg Omen metric. We spoke about this briefly in our May Cadence Clips newsletter, but given the importance of it coupled with the fact that we’ve tacked on more than ten additional Omen days since then, we figured we’d bring it back into consciousness. Popularized by…