The tone heading into 2012 is cautious, and the year is likely to be one of continued rolling crises. But the U.S. economy has come far and is on much firmer footing than it was in 2008. It is our view that, moving through 2012, the U.S. economy will continue on a path of recovery, while we recognize the need for investors to be agile and diligent.
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This essay is devoted to understanding how two key investment principles – a long-term equity time horizon and diversification – have performed in past periods of severe economic dislocation. Analysis demonstrates that maintaining these principles has proven extremely valuable, particularly in periods of volatility.
The new regulatory requirements stemming from the passage of Dodd-Frank will certainly be a costly addition to the reporting framework of the alternative investment industry. However, this new era of heightened regulatory and compliance procedures also brings the potential benefits of financial stability and investor protection.
An attorney/entrepreneur makes the case for investing in commercial claims. Investors in this specialty finance sector supply capital to companies to pursue their claims and hedge the risk of loss and, in return, receive a percentage of the claim proceeds.
As the European debt crisis has evolved, shifts in sentiment have caused dramatic swings in capital markets; swings not easily characterized by underlying investment fundamentals. This uncertainty has driven Italian bond yields to dangerously elevated levels while the yield on German one-year notes turned negative – hardly signs of a healthy economic environment.
Global wealth has increased to $231 trillion from $195 trillion in 2010, led by growing wealth in South Africa, India, Australia, Chile, and Singapore. This study of world wealth analyzes trends across nations and over time, including the life cycle link between wealth and age, household wealth, and prospects for personal wealth.
Europe has entered a new stage of the debt crisis, as funding stress in the banking sector has risen to extremes. The bond spreads of Belgium, Austria and France have risen to 290, 150 and 155bps respectively, record highs and 5 to 6 standard deviations above norm. The current trends may be unsustainable if left unchecked for more than a few weeks.
With the right combination of proven technology, built-in controls, and informed human judgment, family offices can implement a risk management framework essential for meeting the wealth preservation and performance needs of families made wary by the 2008-2009 financial crisis.
The authors summarize the history of the IRS' voluntary disclosure programs to date and conclude that, indeed, it is still possible for a U.S. person to become U.S. tax compliant and avoid criminal prosecution by making a voluntary disclosure.
This paper offers a practical look at how an individual or family might plot a successful road map that aligns and grows with their unique abilities, needs, and personality. The authors detail the steps in a philanthropic asset allocation process involving fact-finding, planning, and continuing assessment as seen through the eyes of three hypothetical clients.