The investing world has changed dramatically since the credit crisis. Technological advances have continued to reduce trading costs in the equity markets and global central banks have embarked on and sustained zero-interest-rate policies. According to Merrill Lynch, 83% of the world’s equity markets are currently supported by countries with such policies. From a historic perspective, the current low level of global interest rates, both real and nominal, is only parallel to the depression era of the 1930s. These conditions have resulted in a global stock market that is driven by broad economic announcements as opposed to company fundamentals. The evidence of this trend can be seen in the high correlations amongst sectors and stocks as they react as a group to economic news such as employment or inflation statistics.
We work closely with our clients to understand their goals and risk tolerance to help them create a long-term plan. As of December 31, 2016, we manage $1.63 billion for over 800 families and institutions. Of those relationships, over 25% exceed a decade in length.