Below you'll find a list of all posts that have been categorized as “Quarterly Letter”
April 30, 2021
Dear Investors:
April 30, 2021 Dear Investors: “Miner” Setback It is time to evaluate your level of exposure to precious metals. We believe the macro cycle for gold and silver has turned. This could be the last chance to build a position at depressed prices. The economy is likely headed into an inflationary period and it is time to act. Deloitte has …
March 30, 2021
Dear Investors:
March 30, 2021 Dear Investors: Two diverging schools of macro thoughts are prevalent today. One calls for a “Roaring 20s” redux while the other believes in a forthcoming liquidity crisis. Both narratives have valid points and flaws. To be clear, we find ourselves right in between the two. Let us elaborate. The central argument of the reflationary thesis is that …
January 28, 2021
Dear Investors:
Crescat finished strong in 2020 to capture the top three spots in the Bloomberg News US hedge fund performance table for December. All three Crescat funds made it into Bloomberg’s top 10 for the full year with the Crescat Precious Metals Fund taking the #1 spot. We are working as hard as ever to continue to deliver in 2021. We …
October 27, 2020
Dear Investors:
History does not exactly repeat, but it often rhymes. The art and science of macro investing is comparing past business cycles with the present across a mosaic of different indicators and time frames to determine the most probable path forward for markets. Throughout time, financial markets and the economy have been intimately linked to cycles of expansion and contraction of …
August 28, 2020
Dear Investors:
A New Bull Market for Precious Metals Central banks are facing a serious predicament. After decades of ongoing accommodative monetary policy, the world is now sitting at record levels of debt relative to global GDP. In our view, there has never been a bigger gulf between underlying economic fundamentals and security prices. We are in a global recession, but equity …
April 14, 2020
Dear Investors:
Equity bulls are coming into Q1 earnings reporting season amped up on Fed liquidity after a record $2.3 trillion of monetary stimulus announced last week. The problem is that the US economy just entered a massive asset bubble bursting recession. The fundamental downturn was in motion even before coronavirus blanketed the country. Earnings for the broad Russell 3000 stock index …
January 29, 2020
Dear Investors:
Download PDF Version Bear Market Looms The bear case for US stocks has never been stronger. The set-up looks like January of 2018 when we were similarly bearish yet the market kept screaming higher. Our views were strongly vindicated in February and over the course of that year. The speculative mania of 2019 was wholly unwarranted, not supported by macro …
October 17, 2019
Dear Investors:
Read PDF Version Outlook for US Stocks and the Economy A breadth of deteriorating indicators is signaling an inflection point for the US stock market and economy. The percentage of inversions in the US yield curve surged to over 70% last month. This level of upside-down term premium has always led to severe bear markets and recessions in the past. …
July 23, 2019
Dear Investors:
Download This Letter in PDF Form We believe there is an opportunity to capitalize on a material downturn in the business cycle based on the composite of timing and imbalance indicators in Crescat’s 16-factor macro model. US Equity Markets The downturn could be particularly brutal for US stocks because we are record late in a fading economic expansion …
April 18, 2019
Dear Investors:
Download This Letter in PDF Form The year-to-date rally in global risk assets after the Fed flip appears to us to be a last gasp of speculative mania for the current economic cycle. In our view, three flawed narratives are driving late-cycle euphoria in financial markets today: “Central banks can always prevent a downturn in financial markets and …
December 31, 2018
Dear Investors:
Download This Letter in PDF Form We are happy to report estimates for Crescat’s 2018 performance: Profit Attribution by Theme Investment Outlook Summary September 20, 2018 should mark the closing high for the S&P 500 to end the second longest bull market in US history. It should also mark the top of the “everything bubble”, a term coined …
November 16, 2018
Dear Investors:
October was a frightening month for investors around the world. From Hong Kong to New York, stock markets were slammed by a wave of fears about slowing growth, trade wars, and higher interest rates. The Nasdaq took the brunt of the damage. Stocks like Amazon and Netflix both lost around one-fifth of their value as the Nasdaq Composite …
September 15, 2018
Dear Investors:
May 11, 2018
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January 26, 2018
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November 18, 2017
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August 04, 2017
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May 01, 2017
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January 10, 2017
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October 03, 2016
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June 30, 2016
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March 16, 2016
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December 17, 2015
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August 26, 2015
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June 11, 2015
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March 17, 2015
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October 22, 2014
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July 23, 2014
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October 26, 2006
Dear Investors: