Risk Intelligence

We keep hearing and seeing all the high risk adjusted returns being offered.... Yet no one can tell us what their cost of capital is....and what the risk is...

Predators seek out and devour the prey whose brains are smallest relative to their own. The reason? Comparatively unintelligent animals have fewer, unimaginative responses to the risk of being eaten. The hunter knows many things, but the hunted only one.

There are way too many hunters (hedge funds)out there right now and their bellies are full.

The consensus for 2007 is for much more of the "same" but there is a disconnect with bond yields and their spreads relative to stocks and that is currently being dismissed as an anomaly...we'll see!

Barkly seen here learns from his mistakes quickly, or at least tries to!