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The insurance marketplace conditions are changing throughout the U.S., particularly for those with homes and other property in catastrophe-prone locations. The results outlined in this study highlight factors to consider when devising an approach to protect family members, properties, and reputational concerns in the face of current and future threats.

Hackers and cybercriminals are becoming increasingly sophisticated with their attacks. With more intelligent and connected devices, as well as the importance of a person’s digital identity, cyber insurance is a vital component of an individual or a family’s coverage.

Although climate risk is likely underestimated by financial markets, investors would be wise to consider it in their investment decision-making process. Given the expected future repricing of this risk, there is a window of opportunity for investors to get ahead of the curve. This paper provides a high-level overview of the current climate science and discusses a few economic implications.

The pursuit of forecasting what opportunities and obstacles lie ahead takes added importance when looking at a new year and new decade to come. What follows are some thoughts about the opportunities and challenges before us, along with the identification of significant trends that will guide our analysis and portfolio recommendations. In addition, this issue includes an explanation of a goals-based investing approach, updated performance for major asset categories, and key market events to watch.

The familiar cliché that hindsight is 20/20 seems particularly apt as we step into the year 2020 and look back on the decade of the 2010s. Throughout the past 10 years, we returned time and time again to principles and themes that we considered vital for success not just in this decade, but any decade. Revisiting the core principles and themes, while also highlighting the market’s lessons, will serve wealthy families well in the decade to come.

In 2020, we see a slightly better economic growth environment but modest capital market returns relative to the stellar gains of 2019. The global economy and markets will take two steps forward as stimulus measures lead to firming global growth, but policy uncertainty will cause markets to periodically take a step back. The U.S. election will come into focus, and markets will ebb and flow with the changing dynamics of the race. Equities should outperform fixed income. The push and pull interest rate environments is set to continue.

As technological advances are disrupting and transforming companies in every sector, the traditional investing landscape is also being disrupted. Venture capital is at the core of the transformation and has become a critical component of a long-term investment strategy. With the potential for attractive returns and significant impact to society, venture investing presents a prime platform for cross-generational conversations about investing and the critical role it can play in the family’s portfolio.

In seeking to evaluate the risk and return potential for a range of asset classes within the anticipated investment environment, there is caution given the deceleration in the economic cycle indicators that are monitored. A recession is not anticipated in 2020, but the conditions could change rapidly and investors should be prepared to make adjustments as necessary and appropriate.

It is an open question whether investors in 2020 will remain as sanguine as they did in 2019. The U.S. and China are settling into a protracted battle over strategic interests, global economic growth is slowing, and central banks are running out of options. Meanwhile, political uncertainty is elevated with voters voicing their frustrations everywhere. Even if politics and growth do surprise to the upside, weak earnings and stretched valuations, at least for many assets, may weigh on returns.

For the first time, more than half of the CEOs surveyed believe the rate of global GDP growth will decline. This caution has translated into CEO’s low confidence in their own organization’s outlook. While this subdued outlook may cause concern, it is also not surprising. Shifting headlines around trade conflicts, climate change, political strife, cyber threats, social unrest and the like, cloud CEO's outlook on the road ahead.