How do you calculate what you pay for investment management? Few aspects of financial management are more important for fiduciaries than understanding the costs paid for the management of the funds for which they have responsibility. Read our short blog on how to calculate what you actually pay for investment management.
The Fed raises rates for the first time in nearly a decade. The rate move was an affirmation of the belief that the domestic economy is at a different stage of the recovery spectrum. Although many market participants fear any rate adjustment upward by the Fed, historically a low and slow tightening cycle by the Fed is reasonably received by the equity markets, especially when the path to normalization has been low and slow.
The energy complex continued to wreak havoc as crude oil moved below $30 for the first time since 2003 and the Bloomberg Commodity Index fell to its lowest since 1991.
Developments in world financial markets seem to occur more quickly every year, requiring ever-higher levels of expertise and experience on the part of investment committees. Climate change is a more slowly-evolving issue that will require a more strategic approach from trustees and investments committees. The Paris Agreement and the Clean Power Plan clearly raise important investment considerations for institutional investors. In addition, beyond portfolio considerations, practical issues suggest themselves.
Whether it was the first time in 1980 or last time in 2015, riding Space Mountain has been a scary event. This blind roller coaster is similar to what has unfolded in the equity market recently. Yes, that first blind drop takes your breath away but in the end you survive. We have written about equity market volatility quite a bit in the last few months. In fact, of the 14 trading days in 2016, nine of them have had a move in the S&P 500 in excess of one percent and four have had a move in excess of two percent.