Rising Inflation and Changing Markets with Carl Kaufman

Orion's The Weighing Machine

In today’s episode, Rusty and Robyn talk with Carl Kaufman, Co-CEO, Co-President, and Managing Director of Fixed Income at Osterwise Management in San Francisco.

Before it was the norm, Carl was designing flexible fixed income strategies for his firm’s clients. His decades of industry experience built the trust necessary to switch to the brokerage industry and start work on some game-changing advancements.

Carl talks with Rusty and Robyn about the difference between investment-grade and high-yield bonds, the post-pandemic state of the US market, and inflation projections.

"Try to keep perspective. Ask yourself what is really important. And, don’t forget to look into the real world because sometimes you get so caught up in the Wall Street hype and you forget what the real world is. I learned this lesson very early on unfortunately in the crash of ‘87." ~Carl Kaufman

Main Takeaways

• Be flexible enough to tap into investment grades to get better downside protection. You can achieve better results with high-yield bonds if you deploy the right strategy.
• As long as the economy remains strong and interest rates remain low, companies that have leverage will still do better.
• A three to five percent rate of inflation is normal, but it will take time for the market to achieve that target.
• Be willing to take lower yields for a period of time. Be patient and stay defensive as there will always be corrections.
• The dollar will remain the world reserve currency. As long as the world continues to rely on the US Treasury, dollars stay in a safe position.

Links

• Carl Kaufman on LinkedIn
• Osterweis Capital Management
• Gilbert and Sullivan’s I Am the Very Model of a Modern Major-General
• Robertson Stephens
• Merrill Lynch
• NYU Stern School of Business
• Harvard University Department of Music
• A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton G. Malkiel
• Jeremy Siegel
• FIMA Repo Facility
• New York Times
• FT
• Bloomberg
• NewCo

Connect with our hosts

• Rusty Vanneman
• Robyn Murray

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