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2016: The Tide Is Turning

January 30th, 2017
Here is a copy of GIA's year-end letter. We discuss trends from 2016, our outlook for 2017, and GIA specific news. Enjoy!

Is the Bull Market Finally Over for Bonds?

December 9th, 2016
We recently wrote a letter on the current interest rate environment and our projections for bond yields moving forward. In this piece we discuss how President-elect Trump's political policies may affect interest rates, economic growth, and fiscal and monetary policy.

The Lesser of Two Evils

November 10th, 2016
Here you will find our thoughts on the financial markets after the presidential election results.

Climbing the Wall of Worry

October 31st, 2016
In this most recent GIA quarterly letter we discuss current equity valuations, ongoing global issues, economic “well-being” indicators, and the potential implications of the upcoming election on the stock market.

Granite Investment Advisors’ Thoughts on Brexit

June 30th, 2016
Here you will find our thoughts on Brexit. This letter was sent out to clients on Friday afternoon.

Back to Normalcy?

April 26th, 2016
Here you will find GIA's insights on the first quarter of 2016. In this letter, Scott Schermerhorn discusses valuations and performance of the FANG (Facebook, Amazon, Netflix, and Google) stocks, a potential market rotation into value stocks, and the strength of the world economy.

Currency Impacts on International Investments

April 22nd, 2015
Here you will find GIA's insights on the first quarter of 2015 and recent currency fluctuations, which have had a profound impact on international investments.

How Much Diversification is too Much?

August 25th, 2014
Here at Granite Investment Advisors, we have always believed in owning quality stocks and bonds as core investments for our clients. We search for companies that exhibit strong competitive advantages, maintain consistent and trustworthy management teams, and trade at below average valuations. A balanced GIA portfolio consists of between 30-40 stocks and uses fixed income investments (typically bonds with high credit ratings) for capital preservation and to generate income. By utilizing these investment vehicles and locating value in the markets, we aim to achieve growth over time, while preserving initial investments for our clients. Many firms stress the importance of alternative assets, hedge funds, and commodities as part of their clients’ asset allocation mix. At Granite, we value diversification among non-correlated asset classes as a method to moderate risk. However, diversifying a portfolio too much can actually hurt performance. Morningstar created multiple test portfolios that contained different asset allocation mixes to determine just how much diversification can help or hurt performance. Read the Fidelity article below to learn more!

How Sputnik Indebted Our Students and Created a Structural Headwind for U.S. Residential Real Estate

July 21st, 2014
What in the world does Sputnik have to do with current events? As you may remember, the Soviet Union launched the first-ever space satellite, Sputnik, on October 4, 1957. This event triggered concerns that the U.S. had fallen behind the U.S.S.R. from an engineering and technological standpoint. In an attempt to rapidly close the perceived gap, the National Defense Education Act (NDEA) was signed into law on September 2, 1958.

How Weather Influenced the Economy in Q114

April 30th, 2014
During the 1992 presidential campaign, James Carville, Bill Clinton’s campaign strategist, used the words, “It’s the economy, stupid” to stress what staffers should be focusing on. Although it was designed for use by campaign workers, it became the defacto slogan for the Clinton campaign. We have altered this quote slightly to get our point across about the winter of 2013-2014. It was abnormal in many respects and it likely distorted both economic activity and consumption. Throughout the first quarter of this year, investors have been looking at economic data in an attempt to determine the future direction of the US economy and the attractiveness of various investments. We would argue that this winter was an aberration, so focusing on short-term economic data from this period is likely a fool’s game, as it does not contain much predictive information. Trying to make investment decisions with short-term data will likely lead some to reach faulty conclusions. As always, our advice for long-term investors is to avoid the “noise.”