The Process (Revisited)

 

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It’s Monday, and it’s a great time to revisit asset allocation methodologies I am exploring. Specifically, measuring and mapping the business cycle is important to anticipate future economic growth.

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Further, by imploring an analysis of the term structure of the Treasury market and analyzing credit spreads I find most useful. Useful in the regard of adjusting asset allocations across business cycles seeking to minimize risk as recessions approaches and embrace it when recovery nears( granted easy said than done).

My weekend reading was The Cyclical Behavior of Term Structure of Interest Rates by Reuban A. Kessel (1965). So you know, a real page-turner.

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It’s also an opportune time because the yield curve has flattened to a fresh 11-year low.

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Portfolio Construction

YIELD CURVE ANALYSIS