720Global and Real Investment Advice (RIA) have been collaborating to bring investors unique market insight for two years. On October 9th, 720Global and RIA officially became partners in these efforts. As such, we want to help RIA readers appreciate 720Global’s economic and investment perspective.
Since 2015, 720Global has written nearly 100 articles, produced an important video and participated in a multitude of other events such as conferences and podcasts. While our articles span a wide range of topics, they all adhere to a core set of themes. To maintain consistency in our logic and avoid too much focus on any one topic, we track a “family tree of articles.” At the top of the tree are four “granddaddy” themes. These are major categories under which almost any topic we seek to explore will fit. The offspring of the major themes, so to speak, are core articles used to describe important concepts related to the theme. Progressively moving down the tree, articles tend to focus on a smaller subset of the theme. More granular, these articles may focus on a specific company, news event or a specific economic data point. In amalgamation, the articles provide a comprehensive understanding of the theme and offer examples, trading ideas, and introduce related concepts. This helps readers become more knowledgeable and apply critical thinking on the road to becoming informed investors.
The paragraphs below briefly describe the core (“granddaddy”) themes. At the end of each paragraph are sample articles and links. For a list and summary of every article 720Global has written, please contact us at firstname.lastname@example.org.
Theme 1 – Economics
Economics attempts to describe and quantify the production, distribution, and consumption of goods and services. Understanding economic data, trends and forces are of utmost importance to properly evaluate almost every type of investment. Economics is frequently sold to the public as a complex and sophisticated science, one best left for Ph.D.’s to study, describe and manage. We disagree. Economics is simply the study of human behavior and decision making. Our core economics articles distill the “science” to its basic foundations and deconstruct common myths. In some articles, we review traditional economic approaches to help readers understand the economy as presented, often erroneously, by the financial media, Wall Street, and the government.
Articles we’ve written on economics and economic principals include:
Theme 2 – Portfolio Management and Investment Strategy
Articles about this theme address all investment classes, including specific advice for some asset classes as well as actionable investment ideas.
We never forget that investment management is a series of processes and beliefs used to preserve and compound wealth. Throughout history, markets repeatedly teach the durability of cycles and that periods of superior returns are followed by periods of subpar returns and vice versa. Changes in trend can happen when least expected and result in wealth-destroying losses or wealth-enhancing opportunities for investors. Accordingly, we believe a patient, conservative posture in times like today, when valuations portend future losses, is just as important as aggressiveness when value is presented. Wealth is built over the long term by adhering to a game plan, even if it is not the popular strategy. We subscribe to the motto:
“Risk is not a number. Risk is simply overpaying for an asset.”
Articles we’ve written on portfolio management and investment strategy include:
Theme 3 – Monetary and Fiscal Policy
Central banks and governments, both domestic and foreign, are increasingly playing a larger role in “steering” economic activity. While this interventionism can have positive economic effects and promote their immediate objectives, these actions have consequences. In many cases, the costs of poor policy accumulate over time. Unfortunately, few are able to recognize the potential pitfalls as focus always seems to be on the near-term benefits. We frequently discuss fiscal and monetary policy to help our readers see the potential benefits and understand the potential consequences that lie ahead.
Articles we’ve written on monetary and fiscal policy include:
Theme 4 – Behavioral Finance
At their core, economic activity and financial market fluctuations are driven by individuals pursuing their own interests and the whims of human decision making. At times, decision making is rational, as assumed by most economic and market models. Other times, as history repeatedly shows, humans make irrational decisions. Maintaining a view on the mindset of investors, policy makers and the population can provide a distinct advantage. By recognizing what seems plausible or unrealistic about economic activity, one can ascertain which investments may do well or poorly.
Articles we’ve written on behavioral finance include:
Our core purpose is to enhance our client’s ability to preserve and generate real wealth by identifying, understanding and applying basic truths and coherent logic to the global economic and financial system. 720Global’s articles provide unique insight and candor that is often lacking in financial research.
Please do not hesitate to email us with any questions or comments.
Michael Lebowitz, CFA is an Investment Analyst and Portfolio Manager for RIA Advisors. specializing in macroeconomic research, valuations, asset allocation, and risk management. RIA Contributing Editor and Research Director. CFA is an Investment Analyst and Portfolio Manager; Co-founder of 720 Global Research.