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Today, the state of the economy, add-on acquisitions, and industry diversity are just a few issues at the forefront of the private equity industry. In this podcast episode, Gretchen Perkins of Huron Capital and Silver Leaf Partners' Kathleen Lauster join BDO's Todd Kinney to discuss these topics and more. Additionally, BDO's Karen Baum discusses the benefits of sell-side due diligence and the evolution of socially responsible investing.Tune into the full episode for a range of insights, including:

President Trump’s renewed interest in raising tariffs on Chinese imports from 10% to 25% has set off a round of retaliation from China who will strike with its own tariff hikes on U.S. imports. It now appears that a negotiated deal acceptable to both parties is unlikely to be reached in the near term. What are the implications for investors of a prolonged trade war with China, and by extension, with other countries that rely on trade with the United States?

As private equity firms make their operations, and those of the companies they invest in, more technologically savvy, they're finding that true digital transformation requires a shift in mindset.

Many institutional investors have shed their skepticism and are dipping their toes into the crypto market, adding exposure through crypto funds, futures, and other emerging investment options. However, the world of crypto investing is still relatively uncharted territory. It is important to understand what cryptocurrencies are before investing or accounting for them. Organizations that take a step-by-step approach to due diligence and gain experience with small, low-risk projects involving cryptocurrencies may find they present exciting, new opportunities.

Most private equity professionals agree that a bear market correction, which is typically defined as a 20 percent decline in the broader stock market, is in sight. What no one can predict is the next recession’s duration and severity.

Direct investments for wealthy individuals and family offices can be challenging when competing with the experience, intellectual capital, and the deep network of relationships forged by a private equity firm. The good news is that the thoughtful structuring and the focused implementation of direct investment programs can help in setting private clients up for success.

A portfolio’s asset allocation reflects an investor’s goals and temperament—the need for return and ability to withstand the financial markets’ inevitable turbulence. Over time, as the returns of higher- and lower-risk assets diverge, a portfolio can take on exposures that are inconsistent with the investor’s risk and return objectives. Rebalancing from one asset class to another can put the portfolio back on track. A deeper analysis suggests three best practices when setting expectations for and executing a rebalancing strategy.

Over the past decade, exchange-traded funds (ETFs) have become popular among investors in building investment portfolios. Although sometimes portrayed as unique instruments, ETFs are overwhelmingly similar to mutual funds, from both a regulatory and a structural standpoint. They also possess important features stemming from the method by which investors transact in fund shares, namely to create low-cost, broadly diversified investment portfolios, especially when implementing index-based strategies.

The Internet of Things (IoT), a network of easily deployed sensors and smart devices, combined with advanced analytics platforms and cloud services, has the potential to disrupt and strengthen products and services across multiple industries. Looking to the future, the amount of data produced by IoT usage is expected to hit 4.4 zettabytes by 2020, up from just 0.1 zettabytes in 2013.