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Senior Vice President Joseph Seetoo, awarded the Wealth Management – Trail Blazer Award by the San Fernando Valley Business Journal

Congratulations to Senior Vice President Joseph Seetoo, who was recently awarded the Wealth Management – Trail Blazer Award by the San Fernando Valley Business Journal. Joe’s reputation of excellence, integrity and going above-and-beyond for our clients are just a few of the many reasons why he is considered a trusted advisor by many at Morton Capital. Congratulations Joe!

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Disclosures:

San Fernando Valley Business Journal (“SFVBJ”) Trusted Advisors is an independent listing produced annually by the SFVBJ. The award is based on data provided by individual advisors and their firms. Only advisors who submitted information are included for consideration, and investment returns are not a component of the rankings. The award is based upon a recipient’s application and not upon any qualitative and quantitative criteria relating specifically to one’s position as an investment advisor. As such, the award is not representative of any one client’s experience. This award does not evaluate the quality of services provided to clients and is not indicative of the investment advisor’s future performance. Neither the RIA firms nor their employees pay a fee to the SFVBJ in exchange for inclusion in the Trusted Advisors awards.

Morton Capital Management has been included on the Barron’s Top 100 Independent Financial Advisors rankings from 2007-2008 and 2010-2016. Morton Capital was not included in the Barron’s rankings in 2009 and 2017. Barron’s ranking is not representative of any one client’s experience and is not indicative of Morton Capital’s future performance, nor does it predict any potential investment outcomes. Morton Capital does not pay a fee to Barron’s in exchange for the rating.

 

Protecting Yourself Online: 7 Cybersecurity Tips

Our world is full of connected devices, everything from our computers and cellphones to our cars. This constant flow of information provides efficiency, convenience, and comfort, but along with these benefits comes increased risk. According to Forbes, cyberattacks currently account for losses of over $400 billion annually and that number is expected to skyrocket to over $2 trillion by 2019. Cyberattacks can target large corporations, as we have seen with Target, Home Depot, and JPMorgan Chase, but they can also target anyone who uses the Internet. Over half of all adults in the US suffered from a cybersecurity incident in 2016.

The amount of money lost to cybercrime has quickly surpassed that which is lost to physical theft, yet many of us do not protect ourselves from cybercrime the way we do with traditional crime. There are a variety of methods malevolent parties may use to get ahold of your personal information, which is why it is important to be vigilant when doing anything that involves your personal or financial information. Most cybercrime involves a combination of hacking and phishing. So, to protect against these attacks, you must ensure that both you and your devices are prepared.

Here are 7 steps you can take to protect yourself from cybercrime:
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Joe Seetoo (Podcast) – The Realities of Selling your Business in a Zero Interest Rate Environment

Joe Seetoo is a Partner and Vice President with Morton Capital Management – a Registered Investment Advisor managing about $1.6 bn in assets under management as of June 30, 2016. As a Certified Financial Planner and Chartered Financial Analyst, Mr. Seetoo has 17 years of experience in developing investment strategies for affluent business owners and high net worth families.
Questions Answered:
1. Why is it important for business owners to do financial planning prior to selling their business?
2. Your firm has a niche in identifying alternative investment strategies – why is that?
3. How can business owners (or any investor) generate sufficient income in Zero interest rate environment after they
sell their businesses?

Disclosures:
Morton Capital Management ($1.6 billion in assets under management (“AUM”) as of June 30, 2016) is registered with the SEC under the Investment Advisers Act of 1940. SEC registration should not be interpreted to mean that Morton Capital or its personnel has been sponsored, recommended or approved, or that Morton Capital’s or its personnel’s abilities or qualifications have been passed upon, by the United States or any agency or office thereof.

The alternative investment opportunities discussed may only be available to eligible clients and involve a high degree of risk. Opportunities for withdrawal/redemption and transferability of interests/shares will be limited, so investors may not have access to capital when it is needed. Additionally, the fees and expenses charged on these investments may be higher than those of other investments.

Barron’s rankings are based on data provided by individual advisors and their firms. The ranking reflects the volume of assets overseen by the advisors and their teams, revenues generated for the firms and the quality of the advisors’ practices. Only firms that submit information are considered.

Past results are no guarantee of future results. Inherent in all investments is the possibility of a loss.

Marketplace Lending

Marketplace-LendingThe fixed income landscape has changed dramatically since the introduction of zero interest rate policies (ZIRP) by global central banks in the aftermath of the credit crisis. In an attempt to avoid a global depression, central banks in the developed countries, led by the US Federal Reserve (“Fed”), reduced short-term borrowing costs close to zero. In the graph below, we illustrate the decline in yields across the fixed income landscape for intermediate government bonds (10-year Treasury–in white), corporate bonds (Moody’s Baa–in red) and the federal funds rate (in green) since 2008.

While these central bank actions may have been justified at the onset of the credit crisis, their effectiveness has come into question over the past several years. After all, interest rates represent the cost of capital, and should ideally be set by markets where creditworthy borrowers or seekers of capital are being met by savers or suppliers of capital. Artificially low interest rates encourage the use of leverage in the economy. Also, at these historically low yields, we believe most publicly traded bonds are mispriced and investors are not being appropriately compensated for the risk they are taking. According to JPMorgan, over 60% of the global government bonds are currently carrying yields below one percent, and almost 30% carry negative yields!

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Jeffrey Sarti Featured in Forbes article on How to Invest Your Money In Q4

September’s stock market sell off either created tremendous opportunities to put money to work at lower prices or alerted active investors to position their portfolios defensively for a deeper correction. To find out how you should invest your money in the fourth quarter,  I assembled a panel of Barron’s-ranked financial advisors to share their best mutual fund or exchange-traded fund picks. This elite group is hailed as the top 1% in their field. Barron’s evaluates financial advisors based on their assets under management, annual revenues, years of experience, client retention, charitable contributions and regulatory records.

5. Tocqueville Gold Fund (TGLDX)

by Jeffrey Sarti

The recent bout of stock market volatility across the globe was just the excuse the Federal Reserve needed to refrain from raising interest rates.  However, we believe the collective “wisdom” to agonize over a meager quarter-point hike is typical of the short-term mindset of the investing public.

Read the full article

Market Overview August 2015

“In the world of investing, being correct about something isn’t at all synonymous with being proved correct right away.” – Howard Marks, Oaktree Capital

The global equity markets have been in full retreat since China devalued its currency (CNY) relative to the U.S. dollar (USD) on August 11th. Since then, more than $5 trillion has been erased from the value of global equities on fears that the slowdown in the Chinese economy is worse than expected. As a result, there is now widespread belief that the U.S. Federal Reserve (Fed) will not be in a position to raise interest rates in its September meeting as had been expected. The table below summarizes the year-to-date performance of the S&P 500 (U.S. large company stocks), MSCI EAFE (developed international stocks) and MSCI EM (emerging market stocks) indices. While the equity market drawdowns have been more dramatic in the emerging markets, the S&P 500 Index has also entered a correction phase – defined as a decline of over 10% – since reaching an all-time high in mid-July.

YTD Financial 08.2015

As is evident from the graph below, the S&P 500 Index (green) has enjoyed a relatively calm climb with little to no volatility since late 2011. The Volatility Index (white) measures the 30-day volatility of the market. It is often referred to as the “Fear Index”. A low level of this index is a sign of too much optimism in the equity markets. The psychology has now changed dramatically, as the current selloff has raised many concerns with respect to currency wars, global growth, valuations of the equity markets, and whether the global central banks – stuck on ZIRP (Zero Interest Rate Policy) for almost 7 years – have any ammunition left to battle a global economic slowdown.

Market-Overview-August-2015-Large-Blog-Image
Source: Bloomberg

While U.S. markets have somewhat stabilized this morning, our concern going forward is that the poor underlying fundamentals could finally derail this resilient bull market. We have been articulating the risks associated with the global monetary policies for some time now and have reduced our equity exposure in recent years in response to escalating valuations. Just in July, we published a position paper detailing our thought process with respect to expensive global markets and the rationale behind including an allocation to gold as a hedge against depreciating paper currencies. We encourage you to read this paper and have included a link to our website below.

http://mortoncapital.com/uncategorized/the-case-for-gold-in-an-uncertain-world/

If you would like to discuss this paper, the financial markets, or your portfolio in more detail, please don’t hesitate to contact us.

Sasan Faiz
Co-Chief Investment Officer

The Case for Gold in an Uncertain World

gold barIn this position paper, we will discuss our rationale for instituting a position in gold across our clients’ portfolios. There are many opposing viewpoints about owning gold in a diversified portfolio. We will look to address these countering points of view and explore how the current macro landscape makes the rationale for owning gold more compelling than it has been for quite some time. Specifically, we will discuss:

  • Opportunity cost of owning gold – Investors often shun gold in favor of assets with a positive expected return, namely stocks and bonds. However, stocks are trading near all-time high valuations and yields on traditional bonds are anemic, making alternative investment opportunities such as gold more attractive on a relative basis.
  • Traditional diversification is broken – Historically, stocks and bonds have behaved differently from one another and have therefore acted as efficient diversifiers when combined in a portfolio. However, in recent years, the data has shown that stocks and bonds have become more highly correlated with one another. Gold, on the other hand, has displayed a low correlation to both stocks and bonds over extended periods of time.
  • Gold as a store of value – Gold is the one global currency that cannot be created out of thin air in this age of undisciplined money printing. All currencies are susceptible to debasement by central banks looking to stimulate their debt-ridden economies through easy monetary policies. Unlike most paper currencies, gold has maintained its value over long time periods.

We understand that this positioning may not be popular as traditional assets continue their march upward with the support of central banks. However, with the expensive nature of traditional stocks and bonds, coupled with the heightened risks of currency debasement and possible inflation, we believe that a modest allocation to gold can act as a meaningful hedge over time.

Read the full position paper here