The Lack of Investment Fundamentals During Chaotic Times Stability Doesn’t Alleviate Dangerous Outcomes

Anything is Possible, but Don’t Lose Sight of the Big Picture

Anything is possible, of course. Britney Spears may get her act together. The Chicago Cubs' free-agent spending spree may lead to a World Series triumph this year. The next presidential race may be all about issues, not personal attacks. But our thinking tends to be more in line with Seth Klarman's, who in his most recent letter to Baupost Group investors states simply: “Eras of quite low volatility and general prosperity are often followed by periods of disturbingly high volatility and economic woe.” We think we'll position our portfolios more with that in mind.