Resource Search

As the world turns the COVID-19 tide, the initial economic recovery from the pandemic will only be partial, with global output not returning to pre-crisis levels before 2022. Nonetheless, a number of factors will help drive equity markets higher and investment opportunities elsewhere too. In the long term, dangers around market timing mean that Strategic Asset Allocation (SAA) remains the way to deliver sustainable portfolio returns.

Companies in the cannabis industry and individuals working in cannabis-related businesses have sought to turn to the federal bankruptcy courts for relief when they became insolvent. While federal bankruptcy courts have taken jurisdiction for bankruptcies of companies focused on federally legal, industrial hemp, the United States Trustee Program has repeatedly challenged the ability of companies focused on medical or adult use cannabis.

The Denver City Council has approved a new local license to regulate and implement medical cannabis research and development facilities, marking the beginning of the city’s efforts to update its cannabis rules. For the first time, the city’s licensing process will include social equity requirements.

Most equity index maintenance is routine. We explore how the COVID-19 pandemic could make things different for major index providers ahead of their regular updates.

For the investors with the capital means to drive much needed social and environmental change, the time is now to align their values with impact investing. This year’s report highlights the positive impact of a portfolio committed to incorporating environmental, social, and governance (ESG) criteria with a goal to earn an attractive return while doing good in the world.

In the absence of nationwide directives from the federal government on how businesses should operate during the COVID-19 pandemic, states and municipalities have been issuing numerous orders—with variations big and small—detailing the scope of restrictions in place in each jurisdiction. Although businesses in the cannabis industry are used to complying with a patchwork of differing directives from state and local governments, it is important they take additional steps in order to mitigate their risk of suffering negative impacts from COVID-19.

Contrary to conventional “wisdom,” decisions regarding manager selection can impact performance as much as or more than decisions regarding asset allocation. Success in this manner involves the ability to identify and access managers who are often not available in common formats, such as mutual funds and most open-architecture investment platforms.

Over the last sixty years, private equity investing has developed from the original leveraged buyout and venture capital deals (once the unproven territory of financial pioneers) into a tried and tested investment philosophy. Opportunity for investing in the asset class has grown considerably, with a multitude of strategies available across all stages, sectors, and geographies.

Investors should not design portfolios to survive markets on average, but rather to survive every day and, most importantly, the worst days. As Benjamin Graham said, “the essence of portfolio management is the management of risks, not the management of returns.” At the core of a robust portfolio construction framework is to take a risk conscious approach—where investors must bear risks intelligently.

Despite a weak economy, global financial markets have rebounded, liquidity has been restored, and investors are reentering the markets. Given the risk of a second wave of COVID-19 and other factors, is the stock market being overly optimistic about the growth outlook over the next year?