Coventry League exited the U.S. equity markets last summer despite some prospective investors and silent partners—not being so silent—questioning our rationale during such an ebullient market.
Well, we aren’t the brightest folks in academics or most articulate. However, we seem to have a knack—read, luck—for capital allocation, having achieved some pretty good unlevered annualized returns over an entire business cycle. Nevertheless, the market is down roughly ten percent since late 2014, so congratulations if you bought puts on broad-based indices.
Now, please reference the often-referenced Baltic Dry Index (BDIY), a harbinger of things to come in global trade: