Overview
Financial markets continue to hope for interest rate cuts, but the resilient economy and stubborn inflation are delaying action by the Federal Reserve—and leaving investors on edge. Rather than focus on the journey, however, we think it’s better to look toward the ultimate destination—which in the case of rates is likely lower and reinforces the merits of putting cash to work.
In this issue of NB Private Wealth Aspire, we provide perspective on the current environment and consider opportunities for long-term investment and estate planning, designed to help you achieve your goals and fulfill your purpose.
We think that despite recent disappointments, the Fed will be able to start cutting rates this year, even as the economy and corporate America continue to show resilience.
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Aspire to…INVEST
Time to Make Your Money Move
With peak interest rates likely at hand, the current appeal of cash may prove fleeting.
Investors moved roughly $1.3 trillion into money market funds during 2023, bringing the total to nearly $6 trillion—an all-time high. Many were looking for safety and certainty after the equity and bond sell-off of 2022. Some were reassessing their long-term asset allocations in the new, higher-yielding environment. All were “paid to be patient” with a high cash rate that has been ahead of inflation for nearly a year.
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Aspire to…DIVERSIFY
Private Credit is Gaining Steam
A vast menu of private credit arrangements now helps finance nearly every aspect of the economy.
As traditional lenders retrenched in the wake of the Global Financial Crisis and, more recently, a spate of regional bank failures, suppliers of private credit increasingly filled the vacuum. Today, private credit in its myriad forms is no longer just an intriguing alternative asset class, but arguably a foundational pillar of the financial system—offering what we consider attractive opportunities for investors.
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Aspire to…LEAVE A LEGACY
Trust Planning: Crossing the Generational Frontier
We see “Dynasty Trusts” as a key planning tool with multiple advantages as you consider your family’s wealth and well-being over time.
The largest wealth transfer in history has already begun, with more people becoming billionaires recently because of inheritance than for any other reason, according to estimates. This has reinforced interest in estate planning that can transfer wealth tax-efficiently, while providing flexibility to ensure that it is a support for—and not a burden on—future generations..
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Aspire to…ENGAGE
U.S. Election: Age, Cash and Conflict
A political observer gives Joe Biden the edge, but thinks plenty could happen before November.
The two major candidates for the upcoming presidential election appear to be set, with Democratic incumbent Joe Biden facing off against Republican Donald Trump once again. In some ways, the contest is unique, with the oldest candidates in history and the first currently indicted former president seeking reelection. It’s also the first presidential rematch since 1956, and involves widely differing visions for the country on immigration, taxation, social issues and defense. Into this tempest, we invited political scientist Sam Potolicchio to assess the dynamics of the race.
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Our Team
More About Who We Are
We approach client partnership in a different way. With a sole focus on wealth management, we take the time to understand your values and vision, so we can tailor solutions aligned to your purpose and investment goals. Each advisor team brings the full depth and breadth of all NB Private Wealth has to offer.
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