Posted on : By : PPD1962 Posted in : Debt|Equities|private credit|Private Equity

EQUITIES: which stock should I buy?

QUESTION:  The number of listed stocks is falling across many exchanges.  Which stocks should I buy?

ANSWER: Your question is the wrong one for investor interested is getting a reasonable return of any given risk preference.  The question should be what shouldn’t I own?

Since the nadir of the global financial crisis (“GFC”) in 2009 the listed equities markets have profoundly changed because:

  • the proliferation of private equity funds;
  • the increased availability of  private debt to companies and investors;
  • the shift from active management to passive management in public equities’ markets; and,
  • gamification, rather than investing, by small retail investors.

In short, picking winners requires now requires an even larger edge in information (non-public mostly) and analysis, whereas picking losers in the listed markets requires mostly analysis and public information.

TSA expects the number of listed equities to continue to shrink.

Contact TurnerStreet if you wish to buy our current asset allocation recommendation (we do cash and equity only allocations for our wholesale clients), and the list of the stocks TurnerStreet would buy for a typical wholesale client, or if you would like TurnerStreet to manage your equities and derivatives portfolio.

IMPORTANT: This Q&A is general product advice for wholesale or sophisticated investors, and NOT suitable for retail investors.  Retail investors should seek advice specific to their circumstances and not rely upon general product advice written for other types of investors.  Retail investors acting like wholesale/sophisticated investor are likely to experience inappropriate and/or excessive risk for their circumstances, and unacceptable losses.
Posted on : By : PPD1962 Posted in : Debt|Private Equity|Realty|Uncategorized

REALTY: nobody told Blackstone you can’t lose money on property

In a stunning, and not the first this year, Blackstone is defaulting on a property backed bond it issued: see here.

Investors should note if that with interest rates rising, still, there will in more defaults associated with property investments.  Offices are difficult to repurpose into residential, so don’t try to “catch the falling knife”.

Cash is still king.

Posted on : By : PPD1962 Posted in : Alternatives (really weird stuff)|Debt|Equities|Private Equity|Realty

ESG: why don’t you intend to offer a product?

Question: if the world’s largest asset manager, Blackrock (BlackRock’s Pitch for Socially Conscious Investing Antagonizes All Sides – The New York Times), does environmental, social and governance (“ESG”) for investors, why won’t TurnerStreet?

Answer: ESG means different things to different investors (e.g. is nuclear green?), and what we think determines to be ESG responsible might not suit a particular client.

Hence, TurnerStreet’s product design is about the investor-client telling us what they want excluded from the performance benchmark for ESG reasons.  With technological advances it is straight forwward, and relatively cheap, to have a client specific benchmark.  This makes it possible to measure our worth as an investment manager, and for the client to quantify the cost of their ESG decisions against a traditional benchmark.

Blackrock can tell clients what are ESG investments, but we aren’t as presumptuous.

Posted on : By : PPD1962 Posted in : Alternatives (really weird stuff)|Cash|Debt|Derivatives|Equities|Personalty|Private Equity|Realty

AA is sometimes drive by tax strategies

Question: Is this true (How Ordinary Americans Can Also Buy, Borrow, And Die Without Paying Taxes)?

Answer: Yes.  The asset allocation (“AA”)decision, the most important in investing, is often driven by expected returns and risks of various asset classes.  However, if you are wealthy it is often driven by tax.  The “buy, borrow, and die with paying taxes” strategy will shift AA.