Rising interest rates late in 2016 took a toll on bond prices, and were the catalyst for one of the worst quarters for bonds in recent decades. Current expectations are for interest rates to move gradually higher in 2017. While rising rates can be a headwind to bond performance in the near term, they don’t impact the coupon rate or cash flow associated with most bonds over time. Over the long-term, higher yields are actually a positive for investors.
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Runaway data growth is probably one of the greatest risk factors facing organizations today. With many organizations struggling to deal with the rapid explosion of data, coupled with increasingly aggressive regulatory enforcement, how should they drive change in information governance to achieve operational efficiencies and guard against data breaches? The key is to address the source of the problem and focus on three important areas to stem or flatten the information growth curve and proactively mitigate risk.
The start of the year is always a good time to focus on personal improvements with resolutions. Sharing in the same spirit with an investment outlook in mind, there are ten temptations to resist in 2017, including resisting the macro and political developments, investing while looking through the rearview mirror, and sticking with a strategy designed to work only in a falling rate environment.
Given the expectation for the U.S. economy to grow at a modest pace for the eighth year in a row, the risk of the U.S. economy or inflation becoming “overheated” in 2017 remains low. The Fed will likely move the federal funds rate higher twice in 2017, once in the first half and again late in the year. There are still important headwinds to consider, like a stronger dollar that will hamper trade for large multinational companies and continued geopolitical risk.
The disruptive political events and social unrest of 2016 may pose significant operational and strategic risk for businesses. With events at the ballot box and on the streets exposing flaws in the systems of liberalism and globalization, business leaders must think differently about priorities and risk management practices.
Lawsuit awards can be incredibly high, and individuals known to have substantial assets are particularly vulnerable. In some cases, the high-stake lawsuits can cause devastating reputational damage. Given the risks and exposure, the need for holistic liability protection is an important issue. Learn the different types of liability insurance available and how to address some of the most common sources of risk, including board membership and social media and online activity.
Enterprising families are showing an increased interest in participating in direct investments around the globe. Some families have turned to private equity out of frustration with the volatility in the public markets and the unexpected correlations between asset classes that occurred during the 2008-2010 timeframe. The factors that impact their private equity portfolios’ success are complex in nature, and there are 15 key considerations that inform families’ preferences for private investments, and, ultimately, impact how well they will do.
We are all inspired by successful entrepreneurs, whether they be technological innovators, social problem solvers like Blake Mycoskie, or even entertainers like YoYo Ma, who redefined the world’s perception of a classical musician. Entrepreneurs are celebrated for universally admired qualities: ingenuity, passion, resilience, and grit. Entrepreneurship helps families build human capital, strengthen family bonds, and prepare future generations to dream big, to innovate, and to conquer every challenge in their path.
Although markets got off to a calmer start in 2017 than it did in 2016, this year may still be one of the most difficult years for long-term investors in recent memory. There is little basis on which to anticipate the policy actions of the new administration and there is substantial potential for large scale change. There will be opportunities to make money, but there will also be many red herrings. Investors, money managers, and wealth advisors will all be challenged to have discipline this year.
For many families of wealth, creating a long-lasting legacy is a fundamental goal, one that shapes both personal and financial decisions. And many of these families want that legacy to reach beyond the boundaries of family, making a positive impact on their communities and the world. For the Anderson family, they made a purposeful decision to approach philanthropy as a family enterprise. In preparation for a new generation coming of age, the family undertook a process of evaluating and fine tuning its philanthropic strategies.