Yieldstream is a product of Tilden Research LLC, whose founders are independent financial research and technology providers. We develop quantitative investment strategies and trading technology for professional money managers, and for our own investment purposes. We’ve been using the Yieldstream strategy in our personal and family members’ investment portfolios since 2010. And now we’re pleased to offer it to other investors as a subscription.
The 2008-2009 financial crisis, and the zero percent interest rate environment that followed, wreaked havoc on many investors’ portfolios. After seeing how much damage their equity portfolios suffered, investors became more risk averse. Many discovered the hard way that they were not as risk-tolerant as they thought they were. So they reduced their exposure to stocks and other risky investments, in favor of bonds. Unfortunately, this is in conflict with what the market has offered: interest rates and yields on typical fixed income investments are near historic lows. Current bond yields are simply not sufficient to support retirees counting on their nest egg. And for younger investors, conservative bond returns aren’t enough to reach retirement goals.
The investment options offered by traditional financial advisors are unacceptable:
You can “chase yield” by buying longer duration bonds, emerging market bonds, or junk bonds. But you’ll probably pay the price: higher volatility, risk of default, or significant loss of principal during inflationary or rising interest rate environments.
Or you can go back to investing a large percentage of your investments in stocks (including high dividend and preferred stocks), because you feel that there’s “nowhere else to go.” But as you already know, this subjects your portfolio to high risk, volatility, and bear market losses.
We do not think either of these “solutions” is acceptable, and therefore we created Yieldstream. We sincerely hope that Yieldstream will help to move your investment experience out of the realm of fear, frustration, and stress, and into the realm of confidence and peace.