A Zeitgeist Portfolio

June 4, 2019 | Ben Hunt | 3 Comments |

Every morning, we run The Narrative Machine on the past 24 hours worth of financial media to find the most on-narrative (i.e. interconnected and central) stories in financial media. It’s not a list of best articles or articles we think are most interesting … often far from it.

But for whatever reason these are articles that are representative of some sort of chord that has been struck in Narrative-world.

New Mexico State Investment Council changes target allocations for 2 endowments [Pensions & Investments]

The tobacco fund’s new target allocation reduces broad U.S. equity to 10% from 33%, broad international equity to 10% from 33%, and core fixed income to 10% from 24%. The new tobacco fund allocation increases non-core fixed income to 25% from 10%, real return to 25% from zero, and real estate to 20% from zero.

I don’t know the folks at New Mexico State Investment Council well, although there are a couple of Epsilon Theory subscribers at NMSIC. But I’ll say this … I love what they’re doing here. It’s a very Zeitgeist-aware portfolio shift, and not just a tweak of a few percentage points here and there. This is a big swing!

I’m overdue for writing the final chapter in the Pricing Power series, where we dig into real assets. Here are the first three chapters …

Pricing Power (Pt. 1)
Pricing Power (pt. 2) – Intellectual Property
Pricing Power (pt. 3) – Government Collaboration

I’m on it.

Comments

  1. Ben, your comments on the subject of real assets can’t come too soon.

  2. Avatar for xmj xmj says:

    I was reading through the old Pricing Power notes earlier today.

    @bhunt which title comes closest to the one you mentioned wanting to write, on Real Assets?

    The Opposite of 2008, of course… what else?

  3. This post (and portfolio) aged well.

Continue the discussion at the Epsilon Theory Forum

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