Hope you are all enjoying the first few days of autumn!
This blog post will highlight a few important topics from Portfolio Strategies’ annual conference which I recently attended. The presenters at the conference are leaders in the investment and related professions, such as technology and tax planning. I want to present these topics to you, so that you will have a chance to have me elaborate on any that would interest you in future meetings.
Socially responsible investing is known by several different terms. Socially responsible investment managers want the money they manage to reflect their unitholders values with regards to stewardship of resources and human rights, for example. They use their position to influence positive outcomes with managements of the companies whose stocks they own. They know that the responsible investing can make a positive difference in the world we live in. This is already occurring at the institutional level of investing. Many large pension funds are looking to the future by investing in a socially responsible manner.
Technology can help clients have a better understanding of their portfolios. PSC is seeking ways that their clients can have more access to the information they need on any electronic device if they so choose.
The importance of advice was discussed. The amount of financial information that is available to people makes the importance of expert, accurate, and objective advice even more important. And it cannot be generic advice, it must be advice that is relevant to your own goals and situation. This advice must be delivered in the manner that clients would be most willing to receive it.
Different investment management styles were discussed. There is room for both active and passive management in any portfolio.
Shifting demographics will affect economies around the world. Retiring baby boomers, millennials entering the work force, for example, will affect factors such as employment rates and productivity.
The monetary policies of central banks around the world have some influence on stock markets. We discussed how much they have influenced the market. Negative interest rates are a policy tool that has unknown effects. Imagine PAYING to be allowed to deposit your money at the bank instead of getting a few pennies of interest as we do now. That is the reality for citizens of some countries. If central banks think negative interest rates is a measure that would help stimulate the economy it might become more widespread. It is less a carrot than a sharp stick attached to the carrot.
And last but not least, the current bull market is getting old and wrinkly. No bull market usually lasts more than 10 years and Larry Berman of Berman’s Call who spoke at the conference, has said that there is a likelihood of a recession within the next 3 years.
Questions and comments are always welcome.