November 11, 2015
One test of an investment philosophy is whether it can adapt to predictable economic cycles — and some not so predictable. John De Clue, Dan Farley, Jeff Kravetz and Tim Dreiling, investment leaders within The Private Client Reserve, recently sat down to discuss The Private Client Reserve’s wealth management approach and how it helps clients work toward their unique goals.
A Steady Hand in Challenging Markets
In an era of unprecedented central bank intervention and low worldwide growth, investors are looking for guidance from professionals with wide-ranging experience and constructive insight.
DE CLUE: The most unusual aspect of the environment we’re in today is the degree to which central banks have intervened in the financial markets, beginning after the Great Recession. In my career, I’ve never seen anything like it. One thing most of us are asking ourselves is, what does the other end look like? What does it look like when the Federal Reserve begins normalizing interest rates and when the European Central Bank begins withdrawing its massive supports?
KRAVETZ: Another thing that challenges investors these days is that we’re in an environment of very low global growth. Europe is growing at a very slow pace.
We’re picking up the pace in the United States, but we’re still sub-3 percent. Asia is slowing down too. Also, emerging markets such as the BRIC (Brazil, Russia, India and China) countries — which used to be growing at a high level — are facing big headwinds. In places like Brazil and Russia, growth has ground to a halt. It’s a question mark: Where do we find growth potential in the future?