Gain insight into portfolio recommendations

Beyond simply providing a recap of recent history, our
quarterly reports provide our clients with insight into portfolio recommendations we make based on our perspectives on the risks and opportunities resulting from current market conditions. We have also included an update of our forward 7-year capital market assumptions with expected return for each asset class and sub-asset class.

– or click a specific topic on the right

Capital Markets

Global equity markets gained 8.1% during the quarter, led by a 10.4% rise in US large-cap stocks.  Despite strong initial performances, markets retreated by 5.1% in early April amid rising US inflation and geopolitical tensions.  In fixed income, the Barclays US Aggregate Index saw a 0.8% decline in Q1 and a 3.1% drop year-to-date.

Strategic Asset Allocation View

Navigating a shifting landscape

Over a seven-year forecast, the focus shifts towards intermediate-duration Treasury notes and new private investment strategies due to evolving market conditions.  With U.S. equities and government debt expected to generate mid-single-digit returns, we adjust our allocation strategy to capitalize on these projections amidst fluctuating interest rates and corporate profit margins.

Asset Class: Strategic Outlook


Fixed Income

Alternatives, Private Equity & Real Estate

Macroeconomic Conditions

The US economy demonstrated robust growth

With a 3.4% annualized increase in Q4 2023 and continued strength into Q1 2024. We also explore economic performance in Europe and China, noting Europe’s recovery from near-recession and China’s Q1 GDP growth of 5.3%, which exceeded expectations.

Government Wealth & Taxes

Recent proposals by President Biden aim to implement a min 25% tax rate

– onultra-high-net-worth households.  The narrative extends globally with various states and countries moving towards higher capital gains taxes to fund social initiatives, reflecting a worldwide trend towards more aggressive wealth taxation.

Shorter-term View

Market movements influenced by inflation trajectories and economic growth patterns

Detailed scenarios range from optimistic projections of robust GDP growth and moderate inflation to pessimistic forecasts involving reaccelerated inflation and potential recessions.

Equity Markets

The S&P 500 surged by 10.4% in Q1

Though it faced a 5.4% decline in early April due to inflation concerns and interest rate hikes. We scrutinize equity valuations with the S&P 500’s market-cap weighted P/E ratio at 19.8x, indicating slight overvaluation compared to historical norms.

Fixed Income Markets

Significant declines in US Treasuries and corporate bonds

The analysis discusses the yield environment and bond market responses to economic indicators, noting current yields present attractive opportunities in safer fixed-income investments.

Alternatives and Private Investments

Private equity reported a 6.2% rise YTD

– reflecting solid performance despite broader market challenges.  The discussion covers hedge funds, real estate, and private credit markets, highlighting evolving investment valuations and strategic entry points in the current economic climate.


Increased Investment in Mid-Term US Debt and Niche Private Equity Strategies

– For certain clients we recommend increasing allocations to mid-term US government debt and engaging more in secondary private equity transactions.  In private investments, we highlight the potential of senior direct lending and asset-backed credit solutions, particularly for middle-market borrowers, and we advise capitalizing on these opportunities given the current market conditions and available yields – in addition to select private equity strategies.