Confronting the Market Setback

“By the end of the summer I became convinced that the United States equity market was setting itself up for a powerful post mid-term election rally. The economic fundamentals were strong: unemployment was at a 40-year low and real growth was better than 3%; the Federal Reserve was raising rates, but that was only a noble attempt to creep back to normal levels for the later stages of a business cycle. The yield curve was likely to remain positive, inventories were not excessive and leading indicators were still rising.” Click here to continue reading.

Source: Blackstone
 

The Grinch Comes to Loanland, but Expect a Short Visit

“Just seven short weeks ago, the floating-rate loan market was standing tall with 4.0% year-to-date return through October. Not only were loans on pace for the 5%+ calendar year mark that many anticipated, they had performed with remarkably low volatility and a performance profile that trumped all major asset classes.

Enter the Grinch.

Click here to continue reading.

Source: Eaton Vance

Why Finanical Wellness is a Must-Have Employee Benefit

“A recent PwC survey of U.S. employees showed that financial wellness is the most desired benefit exceeding even student loan repayment. According to the SunTrust National Financial Confidence Index, 43% of Americans don’t have $500 saved for emergencies and two-thirds report that financial stress keeps them up at night. That worry follows them to work, often leading to lower satisfaction in pay, decreased productivity and poorer health.” Click here to read more.

Source: EBN 

Update on the Investment Markets

On Friday, December 21st the Innovest Investment Committee sent a communication regarding the investment markets to our clients.

Coal and Diamonds

Investment returns from one year ago seem like a distant dream. In 2017, U.S. large cap stocks returned 21.8%, and overseas stocks gained even more: developed international stocks were up 25.0%, and emerging markets roared with a gain of nearly 37.3% for the year. Even high-quality bonds generated returns of 3.5%. Investors’ Christmas stockings last year were filled with diamonds, so to speak. To keep reading, click here.

Source: Innovest

Fed Rate Hike: What Does it Mean for Your Portfolio?

“Here we go again: The Federal Reserve (Fed) just raised the federal funds rate target for the fourth time this year—and the ninth time in the last three years. The move was expected by most economists, although recent market volatility and increasing calls for the Fed to pause rate hikes resulted in a 68% implied probability of a hike the day before the announcement—the lowest level of this cycle. Since the Fed began its rate hiking cycle in December 2015, the day-before probabilities had ranged from 83% to 100%.” Click here to read more.

Source: Charles Schwab

Appellate Court Affirms Dismissal of Chevron ERISA Lawsuit

“Agreeing with a federal district court that plaintiffs did not allege sufficient facts to support a plausible claim that Chevron Corporation and its defined contribution (DC) plan committee breached their Employee Retirement Income Security Act (ERISA) duties of loyalty and prudence, the 9th U.S. Circuit Court of Appeals affirmed dismissal of the lawsuit.” Click here for more details.

Source: PlanSponsor

How This All Happened

If you fell asleep in 1945 and woke up in 2018 you would not recognize the world around you. The amount of growth that took place during that period is virtually unprecedented. If you learned that there have been no nuclear attacks since 1945, you’d be shocked. If you saw the level of wealth in New York and San Francisco, you’d be shocked. If you compared it to the poverty of Detroit, you’d be shocked. If you saw the price of homes, college tuition, and health care, you’d be shocked. Our politics would blow your mind. And if you tried to think of a reasonable narrative of how it all happened, my guess is you’d be totally wrong. Because it isn’t intuitive, and it wasn’t foreseeable 73 years ago. Here’s how this all happened.

Click here to read the article.

Source: The Collaborative Fund

Articles, FYIScott Middleton
Innovest Named A Best Place to Work in Money Management by Pensions & Investments

Innovest is honored to be named a 2018 Best Place to Work in Money Management by Pensions & Investments. This marks the fourth time that Innovest has been awarded the national honor in the past five years (2014, 2016, 2017, 2018).

Pensions & Investments ranked Innovest fifth out of 19 companies with 20 to 49 employees, citing Innovest’s family-friendly work environment and personal and professional development opportunities.

“We are humbled to be awarded this honor for a fourth time. It is one of the awards that we are most proud of as a firm as it is a testament to our outstanding employees and Innovest's culture,” said Richard Todd, CEO of Innovest Portfolio Solutions.

To learn more, click here.

Source: Pensions & Investments

Innovest employees volunteered to paint a senior’s home for Brother’s Redevelopment.

Innovest employees volunteered to paint a senior’s home for Brother’s Redevelopment.