The COVID-19 crisis has kept our industry on its toes, pushing firms and clients to find new ways to communicate and collaborate in spite of new difficulties. If anything, it has underscored how important it is to use technology to your benefit.

This case study covers how advisors like Mike McCann have used technology to automate routine tasks, stay connected with clients and colleagues, and ensure they provide responsive service for every client. His firm, Perspective Financial Services, has used technology to power growth in the face of these challenges – growth for both their clients and their firm.

In reading Mike’s story and his advice, you too can learn to apply these technology tools to your own practice and be better prepared to take on the unexpected.

We’ll cover powerful and practical tech insights and guidance, including:
• Ways technology can help you anticipate client needs and deepen relationships
• How technology can make firms more agile and secure
• Advice based on real-world success

Disclosures:

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TRG 1220-03BE (12/20)

Treasury yields have been on the climb as of late. The 10 year Treasury is up as much as 30 basis points since mid September, and that climb has many dividend investors worried as to the value of the stocks they hold. Most income investors see rising yields challenging the value of income stocks, causing them to fall, but in the 15 times in the post war era that the 10-year has risen 1.5% from its low, the S&P grew by 12% annualized in this stretch. What this current Treasury climb has in common with its predecessors is inflation. The latest PCE posted a 30-year record, and that is being priced into Treasuries, which is eroding the traditional income stream. With realized gains in Treasuries lower than the nominal yields driving headlines, dividend investors might not need to be worried about stock valuations sinking. 

FINSUM: If yields were being driven by growth factors, we might see the more traditional relationship between interest rates and asset prices, but an inflation-driven cycle might not push investors away from dividend equities.

Monetary policy is diverging in emerging markets with some countries keeping policy rates low and others beginning to tighten, and investors are beginning to make a ruling. Countries like Russia, Columbia and South Korea all experienced currency appreciation due to tighter policy, and certain investment classes are being rewarded. Bond markets are signaling a yield curve inversion in Russia, pricing in future rate hikes, but this has been okay for oil exports. While at the other end, Turkey saw its yield curve climb and its currency—the lira—perform poorly in October. There were mixed signals from Brazil, where the fiscal policy signaled lots of public spending. The monetary policy started to tighten to curb inflation, and as a result, markets punished the Brazilian real.

FINSUM: There are diverging schools of thought globally as to how to respond to the combination of the world’s energy crisis and the lingering Covid-19 pandemic.

Strategists at JPMorgan Chase & Co see a weak market in traditional stocks and bonds coming in 2022. They say the remedy for your portfolio is in alternatives like hedge funds and real estate. It's not a small margin of victory either, JPMorgan is predicting a 6% gain in hedge funds and real estate over the traditional composition of stock and bonds. However, they are recommending investors be weary of crypto as they do expect gains but they will be too rocky to ride. In fact, volatility almost halves the value in the investment firm’s mind. JPMorgan sees macro trends dominating the funds because of a variety of factors like inflation and Fed tapering.

FINSUM: Macro hedge funds have struggled in leading up and going through Covid, but with inflation moving, the tide could be turning.

ESG has been for 2021 what the dotcom expansion was for the year 2000, but maybe that growth will fall off like tech did in the early 2000s. This month was startling for the ESG investors as debt issuance took a dive. Green bond issuance slumped 28% and other categories like social bond sales and sustainability loan offerings were down 54% and 49% (respectively) month-to-month. Annually ESG is still in a wonderful place in comparison to last year as the cumulative bonds are over $500 billion ahead when compared through the first 10 months. This volume is concerning still as investors had higher projections for 2021 than are currently being met.

FINSUM: ESG is nowhere near over but ‘faux’ green bonds could be catching enough attention to slow the ESG trend.