One of my core beliefs as a portfolio manager is that we get paid to worry so investors don’t have to. Several weeks ago, Brad wrote about what was worrying investors and whether those issues were worth worrying about. He also acknowledged that there are some real concerns out there as well. I want to build on that idea and provide insight into how portfolio managers think about risks when everything seems to be going exactly as investors had hoped and, except for some short pullbacks measured in hours or days, markets continue to move higher.

Most people know Yogi Berra as the Hall of Fame catcher and 10-time World Series champion with the New York Yankees. Many also know him as an unintentional philosopher, with famous quotations including “It’s like déjà vu all over again.” One Yogi saying I find myself thinking about frequently is this: “No one goes there anymore. It’s too crowded.” Here, Yogi was referring to a popular restaurant in Fort Lauderdale where the Yankees were having spring training. But it seems applicable to the conversations that we have daily. 

When I speak to folks interested in a financial services career, I tell them the best thing about it is that every day is different. This is something that the economy and the markets have made abundantly clear over the past few years. I also often think back to a TV show from the late 1990s, Early Edition, where the main character gets the newspaper the day before it’s published and uses what he’s learned to help others. In challenging times, this might prove useful in finding investment success for clients. Alas, it’s not a resource we have at our disposal. But what we do have is insight from various portfolio managers across the industry.

1969 is often remembered as one of the biggest years in pop culture history. Broadway Joe Namath guaranteed his upstart AFL Jets would win the Super Bowl—and then went out and did just that. The Beatles played together in public for the last time on a London rooftop. Neil Armstrong took one small step for man and one giant leap for mankind. About 400,000 people descended on a farm in New York for the Woodstock Music Festival. And finally, the Miracle Mets won the World Series. 

Brad here. One of the major discussions we have internally is how to allocate investments, with one of the biggest open questions being whether growth or value will do better going forward. Here is a detailed discussion of that by Chris Fasciano, a portfolio manager on Commonwealth’s Investment Management and Research team. Our internal asset management team stewards more than $7 billion in client assets, and this is a rare chance to pull back the curtain and listen to the discussion. Over to you, Chris!