Many Americans will head to the polls next Tuesday feeling caught between a rock and a hard place, forced to choose between two of the most unpopular candidates to vie for the Oval Office in recent history.
While the third quarter of 2016 was neither the best of times nor the worst of times, it was certainly a dichotomy of circumstances.
Money market funds are commonly used by retail and institutional investors to park cash; they are popular options because of their liquidity, principal stability, and payment of short-term yields.
The second quarter of 2016 ended with a bang, as the United Kingdom voted to leave (“Brexit”) the European Union on June 23. This marked the second time in six months that global stock markets experienced severe stress, following the worst January in recorded history.
After months of speculation, on June 23 the UK voted to leave the European Union (EU). Since then, markets have been in turmoil, and many wonder what will happen next, both in the markets and in portfolios.
Newspaper headlines shout the story: “Mass Migration in Europe is Unstoppable” and “A Mass Migration Crisis, and It May Get Worse.” Despite the near-apocalyptic tone of the press, the actual situation is not as unique as suggested. The humanitarian crisis is heart wrenching; however, we are going to focus on addressing the broader questions of human migration trends, the specific issues facing Europe and what the future might hold, and potential investment implications.
A key theme in Balentine’s 2016 Capital Markets Forecast is that public market returns face strong headwinds going forward. Valuations in equities and bonds are near all-time highs which create difficulties for clients who seek real return. It is therefore Balentine’s job to bridge this gap, taking intentional risks in portfolios to smartly increase the expected return for clients. One way Balentine aims to achieve this is through a diverse allocation to private capital.
As we enter 2016, we are almost seven years into a domestic equity bull market run that has defied many investors’ expectations in both duration and magnitude. This equity market strength has brought forward years’ worth of returns. As a result, today’s landscape offers few markets priced for compelling opportunities. Successfully navigating these compelling options will necessitate more discernment in the absence of uniformly accommodative central bank easing.
Reinsurance is a risk transfer service for insurance companies. When insurance companies write enough policies to become concentrated in one area or they need to write more policies to keep the relationships they have, they will engage a reinsurance firm.
The majority of Balentine’s communications in 2016 have centered around the deteriorating market conditions and the weakening effectiveness of central bank policies to assuage the market’s concerns. Given our projections for meager economic growth, we have had to turn to creative solutions for client portfolios to meet their long-term objectives. One such solution is an art-based decision to allocate to gold.