Mast Investment Letter February 2019

Emerging risks in financial products, including index funds and ETFs, have scaled to levels causing declines in wealth management assets/earnings and attention from regulatory and supervisory authorities.  The February 2019 Mast Investment Letter is posted on the Complimentary Reports page of the website:  Metrics are provided (maintained and monitored) to prepare and utilize a measurable strategy to benefit from the wealth management financial product yard-sale.  U.S. stocks long-term real expected return is 4.15% (versus 5.30% long-term median).  Equity risk premium is 3.06% on top of the below-average long-term TIPs yield of 1.08%.  Investor preparations 1) Exit wealth management financial products (and ETFs) before the crowded yard sale 2) Invest in 3mos. – 2year Treasuries (generally 2.5% yield).  3) Establish investment-target expected returns, risk premiums, spreads, channel positions and 4) Execute your strategy as target criteria are achieved.  Don’t just sit there in the products, do something.  Financial products/stories diversify and concentrate your losses because the markets do not conduct transactions on product and story information.  Fit yourself to the market information, not sales product information.  Take advantage of this opportunity.  The February report, and all other data, analysis, update and monitoring reports are available in the website for registered readers:

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Mast Investment Letter January 2019

Regulators express concerns about the increasing proportion of lending, borrowing, security holdings and investments which are non-bank custody or regulated. Our recent week and strategy reports indicate increased stock price volatility which may be a result, in part, of the large proportion of investment securities and assets held in less-liquid funds and products. Banks may now be safer, but investors aren’t. End investors will suffer more losses directly. Financial product aggregators are having much difficulty identifying their own products as the source of price and risk dislocations.

Mast Investment Letter December 2018

Modern Portfolio Theory (MPT) rendered obsolete by central bank asset price distortions and financial product story-diversification. Compare historical returns, investor feelings to expected return analysis. Maintain disciplined and data balance; make insightful decisions. Financial products unravel, confusing wealth management theme stories. Looking to recent news and data, financial products are the source of market dislocation. The industry (and financial stocks) prepare for once-per-decade product and personnel creative destruction. Debt grows and distributes financial product risk into investors’, consumers’ and governments’ balance sheets. Avoid the products. Decrease leverage. Build liquidity. Plan investment strategy ahead.  See all investment reports and data register/login