In the surprise 1994 hit movie Dumb and Dumber, hapless limousine driver Lloyd Christmas, played by Jim Carrey, follows a beautiful socialite across the country to return a briefcase that had been left in his limo. While in his mind his motives were completely altruistic, in reality he was entirely smitten with Mary, played by Lauren Holly. When Lloyd finally catches up with Mary in Aspen, Colorado, he attempts to win her favor.
“What do you think the chances are of a guy like you and a girl like me ending up together?” (Yes, that’s what he said – the movie is called Dumb and Dumber, after all.)
And Mary’s response, after some hesitation was, “I’d say…like one in a million.”
With a puzzled look on his face, Lloyd ponders her response, and then joyfully exclaims:
“So you’re telling me there’s a chance!”
It’s a silly scene in an even sillier movie.
While perhaps not quite as daunting as Lloyd’s odds with Mary, investors seeking meaningful returns with low volatility, using traditional methods, are likely to continue to encounter uphill sledding well into the foreseeable future.
Fixed income investments are bound to struggle with expected Fed rate hikes after a sustained period of record-low interest rates. This, combined with the current valuation of U.S. equities, doesn’t bode well for traditionally allocated portfolios.
Investors who do succeed in the coming period of deleveraging will do so by implementing alternative methods and by answering this question:
What options are out there, and – specifically – where do they fit?
At Topturn Capital we continue to seek returns in unexpected places. The next few years will be a challenge, but it’s the kind of challenge we were created to face.
In a few weeks our Chief Investment Officer, Greg Stewart will release his Second Annual “Surf Advisory”. You’ll want to be sure to catch his forecast for 2016.
Until then, we wish you and yours a most joyous holiday season, and a happy New Year!
– Dan Darchuck, CEO