IASG, Author at IASG

IASG Alternatives was founded in 2015 by current IASG team members Perry Jonkheer, JonPaul Jonkheer, and portfolio managers, Tyler Resch and Greg Taunt. This new company adds to the services provided by Institutional Advisory Services Group (IASG) by offering futures fund and managed account platform products designed to fit the risk tolerance, diversification, and transparency needs of our customers. Our free portfolio review process consists of an initial consultation, research and evaluation of managers that fit prospective customer’s risk return profile, portfolio design, and ultimately daily monitoring and reporting once an investment is open. Through education and proper manager selection we believe futures are an option that everyone should be knowledgeable about as a potential diversifier for their traditional investments.

Market Commentary from Kottke Commodities – Commodity Capital CTA – Kenneth Stein Most of our expectations are just knee-jerk reactions to day-to-day details, but today’s headlines rarely reflect tomorrow’s reality meaningfully. For example, how many tectonic changes in different areas of our lives have and continue to occur, only dimly perceived even by those attentive to […]

“Bracketology”, a term coined by ESPN, is the study of the annual NCAA college basketball tournament. Interestingly the art or science of filling out an NCAA tournament bracket also provides insight into how investors select investment assets. Before explaining, we present you with a question: When filling out an NCAA bracket do you A) start by picking the expected national champion and work backward or B) analyze each matchup, and pick winners starting at the earliest rounds, working toward the championship game?

In “Paradigm Shift” we suggested that the prevalence of negative interest rates on sovereign debt in Europe and Japan could indicate decline in the efficacy of central bank actions going forward. This article will elaborate on that premise by describing negative interest rate policy (NIRP) and why a central bank would employ such an unusual and experimental policy.

Wheat made new lows led by Matif, and corn and beans worked towards low end of the ranges. There were no real weather scares in SAm and both corn and bean prod’n ideas are getting bigger. For the month, corn lost 19-20 cents and beans were down 27. Meal was down $11.00 and oil down 25 points. Chgo was the biggest loser – down 35 cents with KC down 27 and Mpls down 16. Matif wheat was down $14.75 euros/tonne – 44 cents. French wheat is $20-25/ton below SRW and thus continues to bring Chgo down.

The Absolute Return (AR) series of articles provides a primer on alternative investment styles to which few investors have access. Global markets and economies appear to be at the precipice of a paradigm shift making the timing of the AR series of unique value. In the 7 years since the financial crisis, most asset prices have experienced significant appreciation allowing for even the most inexperienced investor to increase his or her wealth. As the saying goes, “a rising tide lifts all boats”. For investors, understanding the tide of financial momentum is extremely important. Accordingly, we summarize 4 primary drivers of past returns to help gauge whether the tide can continue to rise or if retreat is more likely.

The amplitude of grains and oilseed prices last month was extraordinarily narrow. Soybeans were the most-contained, with a high-to-low closing price range of just 28c in the March contract, narrowest for January since 1998. It’s even more remarkable considering that on the 12th, USDA surprised the trade by reducing the 2015-16 U.S. crop by 50 million bushels. The reason that such stable matching of supply and demand rarely persists for a month is the constant fresh assessments of risks to production of crops in the field and the next to be planted. Today, such is the adequacy of supply and geographic diversification of growing areas that the market judges risk to be lowest in decades.

In the three prior articles we discussed the goals of absolute return (AR) investors, defined strategies typically used by AR investors and most recently stressed why limiting loses, a key goal for any AR investor, is vital to growing wealth in the long run. This article reiterates many of those concepts through the interviews of 2 highly respected Global Macro CTA’s. As you read their respective comments note the consistent emphasis of risk, losses and cross asset correlations.

Thoughts on today’s Bank of Japan action and Global Equity Markets The Bank of Japan surprised markets overnight by becoming the most recent central bank to move rates into negative territory, albeit only on new excess reserves created by additional QE, and this time with a razor thin 5-4 vote. This comes on the heels of continued weak economic data, and again (their 3rd time in a year) they postponed the deadline for achieving their 2% inflation target an additional 6 months to early 2017. The Yen weakened dramatically (~2%) overnight as the market was surprised by this seemingly aggressive action in light of recent commentary that additional easing wasn’t necessary.