Clients and Friends,
Many readers will recall the climactic scene in the 1982 movie An Officer and a Gentleman when the main character is pushed to his breaking point by a hardnosed drill instructor and screams out, “I got nowhere else to go… I got nowhere else to go.”
In 2021, that scene played out across the investment industry as portfolio managers surveyed the depressed yield on bonds and piled into stocks. It was jokingly referred to as a T.I.N.A. market: There Is No Alternative.
Now, with historic interest rate hikes, the tide has turned. The benchmark 10-year treasury yield is approaching 5% for the first time since 2007, and money is flowing away from equities and toward bonds.
Read more about how we are responding to the most recent market conditions in our Q3 Market Update:
