Dear Friends, For the markets, it has been an unusually eventful summer. The biggest news in equity markets this quarter was that both Anthropic and OpenAI have delayed their long awaited IPOs. We will return to this later. In our view the moves in the bond markets are more significant and should be the primary …
Dear Friends, We hope you’re having a good start to the summer. This has been an eventful quarter. On May 22, Kevin Warsh was confirmed as Fed chair, succeeding Jerome Powell who will finish the remaining two years of his term as a Fed governor, retaining a vote on interest rate policy. Powell survived extraordinary …
Dear Friends, This is a much longer letter than usual, its length is due to momentous changes that have occurred in the past three months. This is a solemn spring, millions of people have been displaced and thousands have been killed in yet another war in West Asia. In our view, this war was initiated …
Dear friends, We wish you the very best for the new year ahead. Here at Washington Square Capital Management, we are marking our 18th year of providing independent financial advisory, retirement planning and investment management services to our clients and their families. As we enter 2026, we find the investment landscape mostly unchanged from where …
Friends, The investment cycle in AI capacity continues to be the main story in equities markets. Though other parts of the US economy appear to be slowing, the hundreds of billions of dollars being invested in data center capacity and GPUs is driving the market higher. The stock market has rewarded any corporate announcement of …
In the 1990s, policy analyst Joseph Overton proposed a theory that policy proposals were only viable if they were deemed acceptable by the mainstream of the population. Proposals that fell outside this range were deemed to be unlikely to succeed, and sit outside what was subsequently renamed the “Overton Window”. Political scientists and economists have …
Friends, Many years ago, Subir had a front row seat as his wife realigned the production of apparel and accessories across factories in Asia on behalf of a large retailer which is a household name. The aim was to achieve a saving of around 2% on duties and diversify production out of China. The business …
Dear Friends, We trust you and yours had a warm holiday season and a good start to the New Year. Sadly, we know some of our friends are dealing with the impact of the massive fires in Los Angeles over the past month. We know of several families in our extended network who have been …
Dear Friends, We trust you have been well and had a pleasant summer. The storms of the past month reminded us of the precariousness of life and the old quote from radio broadcaster Paul Harvey: “despite all our accomplishments, we owe our existence to a six-inch layer of topsoil and the fact that it rains”. …
Dear Friends, As we head into spring, we are reminded of new beginnings. Like most people of a certain age in the northern hemisphere, we have been pottering about in our gardens. Pulling out old growth and planting the new. It seems to us that the American economy has been in the throes of a …
Dear Friends, We hope you’ve enjoyed a restful holiday season and a wonderful start to 2024. The fourth quarter saw heavy volatility across nearly all asset classes as inflation and the Fed’s response continued to be the main driver of market direction. October began with long term interest rates continuing their upward trajectory as the …
Dear Friends, We hope the end of summer and beginning of fall have been pleasant for you and those close to you. The third quarter saw the emergence of several market dislocations, driven primarily by the impact of rising interest rates on various parts of the economy. Long-term rates in the US jumped in Q3 and …
Dear Friends, We hope you are having a pleasant start to summer. Over the past three months, financial market commentary has been driven largely by a focus on changes in interest rate policy and inflation data, with a sidebar on Generative AI (artificial intelligence). We believe interest rate and inflation dynamics will be the primary …
Dear friends, The first quarter of 2023 was eventful, baffling and utterly predictable all at the same time. As with all manias, the bubble in crypto currencies finally burst last year and financial markets are seeing the repercussions. Unsurprisingly, the retrenchment in crypto currency prices exposed weaknesses and fraud. Crypto exchanges, service providers and investment …
Dear Friends, We hope you’ve had a chance to spend some time with friends and family over the holidays. As we begin 2023, many investors are looking back at 2022 as a year they are more than happy to see come to a close. 2022 broke a multi-year streak of positive returns for equity markets …