Analog Capital Partners

11/03/2026

How much could your portfolio decline before it starts changing your plans?

Your retirement date. Your income. A major purchase. The legacy you want to leave your family.

Recent market volatility is a good reason to take a closer look.

At Analog Capital Partners, we’re offering a complimentary portfolio stress test for individuals and families with more than $2 million in liquid investable assets.

The review is designed to help you understand:
• How your portfolio could respond to a sharp stock market decline, a recession, or changing interest rates.
• Whether overlapping funds and holdings leave you more exposed to the same companies, sectors, and economic risks than you realize.
• How potential losses could affect your retirement income, planned withdrawals, and access to cash.
• Whether the risk you’re taking fits your goals and your capacity to absorb losses.

Owning multiple funds or having accounts at several firms can still leave you with substantial exposure to the same underlying risks.

At Analog, our investment approach considers multiple economic environments and how the different parts of a portfolio work together. We bring that perspective to evaluating your existing investments.

You’ve worked hard to build your wealth. Understanding the risks you’re taking is an essential part of managing it.

To request your free portfolio stress test, send me a private message with “STRESS TEST,” and I’ll share the next steps.

Stress tests use hypothetical scenarios, depend on assumptions, and cannot predict future results.

10/30/2026

Falling prices can create the next wave of sellers.

That is the connection between the portfolio insurance associated with 1987 and daily-reset leveraged ETFs.

Portfolio insurance sought to limit losses by reducing equity exposure as markets declined, often through futures. During the 1987 crash, that selling contributed to market stress.

A bullish leveraged ETF has a different objective: delivering a multiple of each day’s return. But maintaining that multiple can require buying exposure after gains and selling exposure after losses.

Consider a hypothetical 3x ETF with $1 billion in net assets and $3 billion in market exposure. If its benchmark falls 10%:

- Net assets fall to $700 million.
- Existing exposure falls to $2.7 billion.
- Restoring 3x leverage requires reducing exposure to $2.1 billion.

That is a $600 million exposure reduction after the decline, assuming no offsetting investor flows.

When these adjustments are large relative to available liquidity, they can intensify the original move. The IMF’s April 2026 analysis found an association between leveraged single-stock ETF exposure and higher volatility primarily during market stress.

The size of the effect matters. Investor flows can offset some of the pressure, and available liquidity determines how readily markets absorb it. This mechanism alone does not establish that another 1987 is coming.

For long-term investors, the lesson is to understand what an investment will require you to do when markets move sharply.

At Analog Capital Partners, our Cross-Cycle approach emphasizes diversification across economic environments and disciplined risk allocation.

We believe portfolios should be designed with the next difficult market in mind.



Hypothetical illustration assumes the daily target is achieved and excludes fees, financing costs and investor flows. Investing involves risk. Diversification does not guarantee a profit or protect against losses.

10/22/2026

DIVERSIFY NOW.

If you think investing in the S&P 500 automatically means you’re fully diversified, think again.

Nearly 40% of the index is classified as Information Technology. But the economic exposure extends much further.

Amazon and Tesla sit in Consumer Discretionary. Alphabet and Meta sit in Communication Services. Add selected companies supplying power, cooling and data-center infrastructure, and our broader technology/AI-connected group represents approximately 54% of the index by weight.

More than half. Inside what many investors consider their diversified core.
The connections are real. AI investment supports equipment orders, electrical infrastructure, cooling systems and power contracts across multiple sectors. Different sector labels can conceal shared economic drivers.

Our concern: if AI spending or its expected returns disappoint, pressure could spread through that entire chain.

Now consider household positioning.

David Rosenberg recently cited a U.S. household portfolio allocation of 73% equities versus just 7% bonds.

For investors with heavy stock exposure and an S&P 500 core, risk can build at two levels: how much they have in equities, and how concentrated those equities have become.

Recent technology weakness makes this harder to ignore. The Nasdaq Composite fell 2.6% on October 22 as concerns about AI investments resurfaced.
At Analog Capital Partners, we believe now is the time to review concentration and rebalance deliberately.

Our Cross-Cycle approach combines equities, U.S. Treasuries, precious metals and other diversifiers, with disciplined rebalancing across changing economic conditions.
Owning hundreds of companies reduces individual-company risk. A resilient portfolio also needs different drivers of return.

Your retirement plan should be able to withstand a change in market leadership.
Review your exposure. Rebalance. Diversify now.

10/14/2026

The biggest risk to the AI boom may no longer be technological. It may be financial.

Trillions in market capitalization and infrastructure spending depend on one assumption:

AI revenues and profits will justify the extraordinary investment.

But cracks are appearing.
1. OpenAI: The FT reported annualized revenues approaching $50 billion versus a previously circulated $70 billion figure. The gap largely reflects accounting methodology but raises questions about expectations.
2. Anthropic: Reported 2025 operating losses exceeded $8 billion on approximately $4.6 billion in revenue. Enormous growth, but even greater costs.
3. Oracle: Data-center delays, power constraints and financing complications highlight the risks of building ahead of proven demand.
4. Token prices: AI inference prices are collapsing as lower-cost Chinese models intensify competition.

This creates a dangerous paradox:

AI usage could explode while the economics of providing AI deteriorate.
The investment chain is exposed:

AI labs → Hyperscalers → Semiconductors → Data centers → Power infrastructure → Debt markets.

Each layer depends on continued spending by the layer above it.
If revenues disappoint, consequences could cascade:

Lower revenues → Reduced capital spending → Falling earnings → Debt repricing → Valuation compression.

And the implications extend beyond technology.

AI-related investment has recently accounted for a substantial portion of incremental U.S. GDP growth.

A slowdown could become a broader economic problem.
History offers an important lesson.

The internet transformed the world, yet the Nasdaq declined nearly 78% following the dot-com bubble.

Technology companies don't need collapsing revenues for their stock prices to collapse.
A 20% earnings reduction combined with a 30% decline in valuation multiples produces a 44% stock-price decline.

At Analog Capital Partners, our concern isn't that AI will fail.

AI could transform the global economy and still deliver devastating investment losses at today's valuations.

The technology can win. Consumers can win. Productivity can win.

And investors can still lose.

10/06/2026

Quarterly Letter | Q3 2026

What narrow equity leadership, rising rates, and broad asset-class weakness mean for diversified investors.

Markets delivered a very different experience beneath the headline index during the third quarter.

While the capitalization-weighted S&P 500 remained positive, equal-weighted stocks, small caps, REITs, and bonds all declined. At the same time, the 10-year Treasury yield moved sharply higher, creating pressure across several asset classes that investors normally expect to provide diversification.

These conditions do not mean diversification has stopped working. They illustrate why diversification can feel least rewarding precisely when market leadership becomes unusually narrow.

In our latest quarterly letter, we examine:

- Why the S&P 500’s return concealed much broader weakness across the market
- How rising long-term interest rates affected Treasuries, REITs, small caps, and precious metals
- Why we systematically rebalanced into small caps, REITs, and Treasuries during the quarter
- How softer inflation and employment data may create a more constructive medium-term environment for bonds and precious metals

[Read “Higher Yields, Narrower Leadership: What Q3 2026 Revealed About Diversification”]

Our objective is not to predict every short-term market move. It is to maintain a disciplined, strategic portfolio that is not dependent on one asset class, one economic outcome, or a small group of market leaders.

https://na2.hubs.ly/H08dGhF0

Higher Yields, Narrower Leadership: What Q3 2026 Revealed About Diversification The S&P 500 advanced while small caps, REITs and bonds declined. Beneath the headline, the third quarter was a test of market breadth, benchmark discipline and systematic rebalancing. By Billy Desai, MBA, CF

09/27/2026

Something very strange is happening beneath the surface of the stock market.

The S&P 500 is close to an all-time high.

Yet 72.8% of the stocks in the index are at least 10% below their own 52-week highs.

Nearly 3 out of every 4 S&P 500 companies are already in individual corrections. Even more striking: 36% are more than 20% below their highs.

The S&P 500 is market-cap weighted, so a small group of enormous companies can push the index higher while most stocks underneath it struggle.

We've seen versions of this before.

In 1998, the S&P 500 reached record highs despite weak participation. It fell almost 10% over the next three months, then recovered and was more than 16% higher a year later.

In December 1999, a similar breadth divergence appeared near the height of the dot-com bubble. That episode ended very differently.

This past May was only the third period since 1997 when the S&P 500 hit an all-time high while fewer than half its constituents were on Point & Figure buy signals. The others: June 1998 and December 1999.

Earlier this week, the S&P 500 rallied more than 1% to within 1% of its record while more S&P 500 stocks made 52-week lows than highs.

According to SentimenTrader, that had occurred only twice before in nearly a century:

July 23, 1929.
December 21, 1999.

That doesn't mean we're about to repeat 1929 or 2000. Breadth is not a market-timing tool.

But it does tell us something important:

The headline index is giving a very different picture from the average stock.

When leadership becomes this concentrated, the market depends on a small number of very large companies performing.

There are two ways this can resolve.

The healthier outcome: the rest of the market catches up, the equal-weighted S&P 500 strengthens and breadth expands.

The less healthy outcome: the handful of stocks holding up the index join the rest of the market.

That's what I'm watching.

Sometimes the index tells you where the market is.
Breadth tells you how it got there.

Right now, those two stories look very different.

09/24/2026

At what Treasury yield does the equity market break?

A 5.5% 10-year? A 6% 30-year?

Recently, the 10-year Treasury yield reached roughly 5.15%, while the 30-year approached 5.45%—its highest level since 2004.

My view: a sustained 5.5% 10-year and a 6% 30-year would be serious stress tests for equities. But they are scenarios, not scientifically established breaking points.

The more important questions are: Why are yields rising? How quickly? And how long do they stay elevated?

Higher yields accompanied by stronger growth and improving earnings are one thing. Investors demanding more compensation to hold long-term debt, without a better growth outlook, is a much less comfortable backdrop for valuations.

The pressure reaches equities through two channels.

First, higher borrowing costs squeeze businesses as they refinance. Companies that locked in cheap, fixed-rate debt have breathing room—but that protection is not permanent.

Second, higher required returns reduce what investors will pay today for future cash flows, unless earnings expectations improve enough to compensate.

You do not need an earnings collapse to have a substantial equity decline.

Consider a hypothetical company earning $10 per share. At 25 times earnings, its shares trade at $250. At 20 times earnings, they trade at $200.

Same earnings. 20% lower share price.

That is valuation risk.

Speed matters, too. A sharp rise in yields can create losses on existing bond holdings and force vulnerable investors to sell at the wrong time.

What would concern me most is not one yield crossing a round number. It is rising inflation-adjusted yields, widening corporate credit spreads, and falling earnings expectations occurring together.

That combination would suggest the cost of capital is rising while the ability to service it is weakening.

At Analog, the objective is not to guess the exact yield that triggers the next selloff. It is to build portfolios that do not depend on one favorable economic outcome.

The question is not simply, “How high can yields go?”

It is, “How much optimism is embedded in equity prices—and can earnings still justify it?”

09/17/2026

The strongest consensus I hear right now: avoid long-dated Treasuries.

I struggle to find anyone enthusiastic about owning them. And that level of agreement makes me wonder what we might be missing.

The bearish case is familiar: inflation risk, large fiscal deficits, heavy borrowing and concerns about higher long-term yields. These are legitimate risks.

But a convincing economic story and a good investment decision are not necessarily the same thing.

What happens if the next big surprise is not more inflation—but weaker demand?

What if we enter a deleveraging cycle? Households and businesses retrench. Spending slows. Recession replaces resilience. Inflation concerns give way to disinflation—or even deflation.

In that scenario, lower interest-rate expectations and renewed demand for defensive assets could push long-term Treasury yields materially lower. That is the environment in which their role as a portfolio hedge can become particularly valuable.

And because long-dated bonds are highly sensitive to changes in yields, the potential benefit is not just coupon income. A substantial decline in yields can produce substantial capital appreciation. The same sensitivity investors fear on the way down can work in their favor on the way up.

Of course, this is not a free lunch. If long-term yields keep rising, long-dated Treasuries can suffer significant losses.

Nor does every risk-off episode immediately help Treasuries. The nature of the shock matters.

I am not arguing that consensus is always wrong. Being contrarian is not an investment thesis by itself.

But when I hear the same conviction repeated everywhere, I ask:

How much of that story is already in the price—and what happens if a different story unfolds?

For me, the case for considering Treasuries does not require predicting a recession. It requires acknowledging that a recessionary, disinflationary outcome is possible—and asking whether the portfolio is prepared for it.

The goal is not to build a portfolio that wins an argument about the future.

It is to build one that does not require your favorite forecast to be right.

09/13/2026

Can I retire earlier? Am I saving enough? What happens if markets take a hit?

These are the questions we built Analog Capital AI to help you explore.

Our latest version of Analog Capital AI: Planner is now available on the Apple App Store.

Explore your financial future, test different scenarios, and see how today’s decisions could shape tomorrow’s retirement.

Already using the app? Update to the latest version. New here? Take a look—and let us know what you think.

👉 Download or update on the App Store (https://na2.hubs.ly/H07NnWw0)

👉 Download or update on Google Play (https://na2.hubs.ly/H07NnVg0)

09/10/2026

The strategy that helped you build your wealth may not be the strategy that helps you keep it.

Getting wealthy often involves concentration. You commit your time, expertise and capital to a business, a career, real estate or equity in a company.

That focus can create tremendous opportunity. But it can also leave much of your financial future dependent on one outcome.

Once you have accumulated meaningful wealth, the question changes.

“How much more could I make?” is still relevant.

But so is: “How much could I lose without changing the life I’ve worked to build?”

Staying wealthy does not mean abandoning ambition, avoiding all risk or putting everything in cash. It means recognizing that some risks are worth taking—and others no longer serve you.

It means looking beyond the number of investments you own to understand whether they depend on the same economic conditions.

It means keeping enough liquidity so that an unexpected expense does not dictate when you sell.

It means considering taxes, managing debt and building a portfolio you can realistically stick with when markets become uncomfortable.

Above all, it means distinguishing between the risk you can take and the risk you need to take.

At Analog Capital Partners, we believe investment management should reflect that distinction. The objective is not simply to pursue more wealth, but to help protect what that wealth makes possible: independence, family security and choices about how you spend your time.

Getting wealthy expands your possibilities. Staying wealthy protects your freedom to choose.