“Risk control is the best route to loss avoidance. Risk avoidance, on the other hand, is likely to lead to return avoidance as well.” -Howard Marks-

For investors, 2016 did not begin with a bang. It began with a thud.

The downward trend in equities, which had begun in the latter half of 2015, intensified. Equity markets mirrored the drop in oil, which was seen as falling due to a lack of global demand.  Financials, in particular, took a hit, as fears of stymied credit began to over-hang the markets. Due to the long lead time in oil production, many large banks had extended credit to oil producers. As the price of oil continued to fall, investors worried that these loans would not be repaid.

CAM Quarterly Newsletter Q1 2016