Our hour-long conversation with the Osterweis team zoomed by. We covered a lot of topics. Highlights included:
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How they ended up owning equity in Southeastern Grocers, which became a Harvard Business School case study
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Carl Kaufman gives the Fed a C+ for their moves this year. Like the embarrassing uncle, the Fed is late to the party with raising rates and may be overstaying their welcome.
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Bond investors may have grown too comfortable with low and falling rates. Investors’ approach to bonds moving forward deserves reconsideration.
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Earning interest on savings is a new phenomenon for younger investors. There may be a psychology shift that deserves attention.
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With the dramatic shift in the bond market this year, we are in a whole new world. Short-term U.S. treasuries are paying close to 5%, and the fund is taking advantage. On the other end of the spectrum, high yield bonds are paying 9%, and the team is finding attractive opportunities in that space.
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Demographics, globalization, technology, and cheap energy have been headwinds to inflation in recent decades. Moving forward, technology may be the lone bulwark against higher inflation. In particular, the green energy transition may cause more inflation.
We encourage those who missed the Webinar to watch the replay, which is below. Please let us know if you have any follow-up questions for us or the Osterweis team.
