Overview
The coming year is likely to prove eventful as investors gauge the impact of actions in Washington, DC on the economy and markets. Overall, we are constructive on equities and fixed income, although we believe that performance leadership may see shifts, favoring a flexible approach and the revisiting of current asset allocations. From a planning perspective, this could be a time to watch, wait and prepare as legislation unfolds.
In this issue of Aspire, we consider the current environment and offer insights on investment trends, politics and planning opportunities.
The year ahead is likely to bring fresh challenges, from the economy to geopolitics to technological change, and we are eager to leverage our capabilities and insights to continue to capitalize on opportunities and manage risk on your behalf.
Featured Articles
Aspire to... DIVERSIFY
Private Markets: As the Ice Breaks
With a liquidity drought fading, investors can return to the more normal task of building private market portfolios designed to pursue unique investment goals.
The last several years have seen true extremes in the private market environment, from very fluid and dynamic markets immediately after the COVID-19 pandemic to a period of relative inactivity amid rising and higher interest rates, with fewer distributions and exit opportunities. Now, however, we are seeing signs of loosening that could help normalize the market. And with more liquidity, investors may need to think about how to deploy their assets to capitalize on current opportunities while fulfilling long-term goals. In this article, we provide some background on the current environment, and then go over some high-level considerations when it comes to potentially filling out exposures in the coming months.
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Aspire to... INNOVATE
Refining Sustainable Investing Through Active Management
A changing world is requiring new levels of nuance and insight.
In recent years, the landscape of sustainable investing has undergone a significant transformation, with investors and asset managers reevaluating their approaches to stewardship and engagement. As the limitations of the “ESG” acronym (environmental, social and governance) become increasingly apparent amid evolving regulation and economic changes, there is a growing shift toward a more nuanced understanding of sustainable investing—one that emphasizes active management and informed decision-making.
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Aspire to... PLAN
Waiting Game on Taxes and Planning
Major tax legislation is likely on its way—keep an eye out for opportunity.
By all accounts, the November election was a key event when it comes to the tax landscape. President-elect Donald J. Trump has called for an extension of his historic 2017 tax cuts, and has proposed a variety of other changes to help workers and the economy at large. With Republican control of Congress, he has the opportunity to enact much of his agenda. However, tight majorities in the Senate and especially the House suggest that he’ll need to maintain discipline in the GOP, potentially negotiating to resolve any differences on legislative specifics.
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Aspire to... ENGAGE
Trump 2.0: Built for Speed
Preparation and tempo could make a major difference for the new presidential administration.
In a historic political comeback, Donald J. Trump became the first former president to win reelection in over 130 years. With Republican control of Congress, he now could have the opportunity to make meaningful changes in policy direction across a range of areas. The extent of his success may depend on holding together a narrow majority and making progress prior to uncertain midterm elections in two years. We connected with political analyst Frank Kelly to explore the potential dynamics of the new Trump term.
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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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