1/20/2021: Market Update by Jack Ablin, Chief Investment Officer at Cresset
We believe one of the best ways to assess current market conditions is through Cresset’s Five Macro Factors: valuation, economic backdrop, liquidity, psychology and momentum. These gauges offer a useful perspective on the current market environment and the outlook for the next 12-18 months.
1/13/2021: Market Update by Jack Ablin, Chief Investment Officer at Cresset
After bottoming out last August at an historical low of 0.5 per cent, the 10-year Treasury yield inched higher, closing the year at a post-pandemic high of 0.91 per cent. The results of last week’s Georgia election, which gave Democrats control of Congress, pushed the benchmark rate above 1 per cent for the first time since March.
Legendary entrepreneur Larry Levy co-founded Levy Restaurants 40 years ago and built it into the largest provider of sports and entertainment catering in the country. He knows a thing or two about building a business. Just as importantly, he knows how and when to step back. It’s a journey every successful entrepreneur eventually will make.
1/6/2021: Market Update by Jack Ablin, Chief Investment Officer at Cresset Here are Cresset’s Five Themes for 2021
1. YOLO spending will pressure prices
2. The Fed flinches
3. Valuation is stretched, but opportunities remain
4. Investor optimism could lead to disappointment
5. Innovation investing stands the test of time
By Bill Rudnick, Senior Partner, General Counsel & Co-Head of Family Office Services for Cresset You’ve been asked to serve on a board of directors. Or maybe you’ve been serving on a board for years. You are passionate about helping the organization accomplish its mission, but what do you really know about how protected you are in your role? For too many people, the answer is, “Not much.”
12/29/20: Market Update by Jack Ablin, Chief Investment Officer at Cresset Bitcoin (BTC) is on a winning streak. The best-known cryptocurrency, enjoying its longest winning streak since mid-2019, touched over $28,000 on December 26. The recent moves are attributable to institutional inflows, including hedge-fund managers Paul Tudor Jones and Stanley Druckenmiller, insurance giant…
Despite the economic upheaval brought on by COVID-19, M&A activity in many industries remains robust. However, business owners and senior executives now face the dual challenge of managing the intricacies of a sale while navigating the uncharted waters of doing so amid a global pandemic. Thankfully, there are tried-and-true practices that can serve business owners and C-suite executives well in this current environment.
2020 YEAR IN REVIEW: by Jack Ablin, Chief Investment Officer at Cresset 2020 is a year we don’t like to think about, but it will be a year we’ll never forget. 2020 was defined by the arrival of a bevy of black swans. The world suffered its first global pandemic in over 100 years, sending the economy to its most severe quarterly slide in history. The 10-year Treasury note yield plunged to its lowest level on record, 0.35 per cent. Crude oil…
12/23/20: Market Update by Jack Ablin, Chief Investment Officer at Cresset At long last, Congress has passed a $900 billion COVID-19 relief package. The nearly 6,000-page bill provides $600 to every American, adult and child, in households with incomes up to $75,000 for individuals and $150,000 for couples. The program also kicks in an additional $300 in weekly benefits to unemployed…
12/17/20: Market Update by Jack Ablin, Chief Investment Officer at Cresset Thanks to a handful of vaccines, life in the developed world is expected to return to normal starting in the second half of next year. That’s especially welcome news to all the travel and entertainment industries that have seen demand for their businesses evaporate this year. Private transportation prices, from …
12/10/20: Market Update by Jack Ablin, Chief Investment Officer at Cresset Maybe it’s lockdown fatigue, but it appears virtually every risk market has been on fire since news of effective vaccines hit the news a little more than a month ago. Retail investors, who swapped sports betting for stock trading, were joined by institutional buyers last month. Globally, investors ploughed …
12/2/20: Market Update by Jack Ablin, Chief Investment Officer at Cresset Equity markets delivered their best monthly showing in over 30 years in November, despite the fact that COVID-19 infections are spiraling upward at their highest rate since the outbreak began. Will pandemic blowback buffet optimistic investors? November was a remarkable month on several fronts. The 2020 presidential election recorded the …
The tax storm clouds have been brewing for quite some time … and they appear to be getting darker. What’s gathering on the horizon is the likelihood of an increase in both ordinary income and capital gains tax rates. Multiple factors have converged to create this “perfect storm”. The outcome of the election could have major ramifications on tax policy. Joe …
11/24/20: Market Update by Jack Ablin, Chief Investment Officer at Cresset Even though most Americans will be celebrating the Thanksgiving holiday closer to home and with fewer family members this year, one thing we are thankful for are the COVID-19 vaccines that are about to be approved for distribution. Thanks to innovative new research, scientists were able to identify and attack …
Many private equity partners realize it’s no longer a question of if, but rather a question of when taxes will go up. The answer could be sooner rather than later. Currently, the federal estate and gift tax exemption amount is $11.58 million per individual, or $23.16 million for married couples. There is an equal generation-skipping transfer (GST) tax exemption amount …
As a private equity partner, you no doubt have a tremendous amount on your plate. You spend countless hours taking care of your team, your limited partners, your portfolio companies. You recognize the opportunities that the upheaval of this pandemic has presented and are aggressively hunting for new deals. Add in the broader environment of economic uncertainty, political turmoil, and social …
11/18/20: Market Update by Jack Ablin, Chief Investment Officer at Cresset News of a successful COVID-19 vaccine set off a rally in global equities as investors anticipate an end of the pandemic. Value stocks, those pandemic losers with cheap valuations and impecunious balance sheets, surged in response. The Russell 2000 Value index rallied nearly 12%, outpacing the Russell 2000 Growth index …
You’ve spent years building your business. After decades of hard work and sacrifice, you are finally ready to enjoy the fruits of your labor and take some “chips off the table” by selling your business. You have a buyer and purchase agreement in hand and negotiations are going well. Then a global pandemic hits. Now what!? First, don’t panic. Some business …
11/10/20: Market Update by Jack Ablin, Chief Investment Officer at Cresset Now that President-elect Biden has presumptively captured the White House, Americans in general and investors in particular are anticipating what 2021 might bring. Former Vice President Biden will be 78 years old when he’s sworn in next year and the consummate Washington insider will need to hit the ground running. …
Cresset hosted David M. Rubenstein – Co-founder of The Carlyle Group, philanthropist, TV host, and author of the new book How to Lead – as our guest on October 28, 2020, for the latest in our series of “Zoom-side” chats for our clients. David shared lessons learned from the luminaries he has known, and who he interviewed for his book. He also provided …
