Sir David Attenborough has said “There are some four million different kinds of animals and plants in the world. Four million different solutions to the problems of staying alive.”
Investing can feel the same way—endless permutations of investment ideas
Robert R. TeeterManaging Director
One famous episode of Attenborough’s show Planet Earth had him narrating a suspenseful chase scene in which a baby ibex was pursued by a red fox on a nearly vertical cliff. The ibex survived and avoided capture due to its superior mobility at the cliff edge. At times, investing may also feel like a dance for survival along a cliff edge—or so we’re told from the countless doomsayers who purport to see what the future holds.
Similarly, elements of successful investing include the ability to skillfully navigate the countless options for survival, along with a humble understanding that while bull and bear markets will come and go, survival of the fittest—portfolio—marches on indefinitely.
While bull and bear markets will come and go, survival of the fittest—portfolio—marches on indefinitely.
There are more ways to invest than ever before. In this issue, we address how something seemingly so simple, the ETF, became so complex. We’ll also look at how to invest for persistent growth, take a look at the longer-term issues surrounding trade and take a look back and ahead; hoping to share insights that are beneficial to the survival of your portfolio.
Economic & Market Overview
(>50 is expansion, <50 is contraction)
The U.S. manufacturing sector, which comprises about 12% of GDP, has been in contraction for the past five months, according to the ISM purchasing manager survey. This is enough to slow the economy, as it did in late 2015 and early 2016, but not pull it into recession. That depends on the much larger Non-Manufacturing sector, which though it has weakened, somewhat, for now remains in solid expansion territory.
Source Institute for Supply Management, as of December 2019
Robert R. TeeterManaging Director
Looking Back & Looking Ahead
"To strive, to seek, to find, and not to yield." Those famous words of Tennyson, indeed the whole of Ulysses, seem an apt description of the stock market throughout the course of 2019. With a double black diamond decline late in 2018, followed by a belated Santa Claus rally, it was not yet…read the insight
John Potter, CFAManaging Director
Tom Eck, CFAManaging Director
The Case For Growth Investing
Today’s economic environment in the United States presents challenges to many investors. The United States economy has expanded at a 2.3% annual rate since the Great Recession, as compared to the typical non-recessionary pace of 4.2% since 1946.read the insight
Mark MorrisSenior Advisor
Martin LoeserSenior Vice President
"Value” has a nice ring to it. It appeals at a visceral level. Investing in value seems like a reasonable thing to do.read the insight
Patrick Chovanec, CPAEconomic Advisor
There’s a widespread belief that the signing of a U.S.-China trade deal, and expected ratification of the revised NAFTA agreement, means that trade tensions—which hung like a cloud over markets for much of 2019—have gone away. I think they will continue. Corporate surveys seem to suggest that U.S. businesses aren’t dropping their concerns over trade so easily either.read the insight
John (Buck) StevensonManaging Director
A Different Perspective on Impact Investing
Investors who seek to complement a financial return with social impact often are unaware that highly impactful investments exist in full view (and sometimes right around the corner) in many U.S. communities.read the insight