The Earth’s population grew by 1.3 Billion people in this Century --- from 6.1 Billion in 2000 to 7.4 billion in 2016! The U.S.A. has a population of 325 million or about 4.5 % of the world’s total! Looked at another way: The World added 4 U.S.A’s in the past 16 years to its population…..WOW!
Finance and Economics are the building blocks of wealth management. They are about understanding how demographics and the associated changes, be it in changing consumer tastes or in the growth of the population, reflect themselves in asset prices.
What do the demographics tell us?
The underlying systems are working - education, labor, transportation, communication, finance, trade et al. Our World is becoming more connected and the system integration is in sync around the world. Enclosed with your statement are demographic slides CTMA uses; they attempt to put things in perspective. The world is a large place but getting smaller and Businesses scaling around long term demographic trends will continue to grow and be successful.
Many people, and who can blame them, focused on the noise coming from the news this past year and may have missed what was going on. While people were arguing, “The Market” understood, after a number of years of adjusting to the 2008 debacle, the economy and the regulatory environment were set for an adjustment.
Clearly the election was a trigger or signal. The regulatory changes (22 regulations were cut for every 1 added in 2017) and its subsequent affects resulted in a “capitalist melt up”. Everyone was looking over their collective shoulders waiting for the other shoe to drop (i.e. 2008) and it didn’t.
Will a “correction” come….in 2018 or 2019? A collective Psychological adjustment will take place and will result in a decline in asset prices. It should be expected, since, like the tides, human and economic nature has an ebb and a flow to it.
CTMA constructs portfolios to meet your objective and typically we have companies paying you, through dividends and or interest, to own them. We attempt to take advantage of value when it presents itself and invest in growth if it meets the underlying objective.
However, in order to meet your objective, we need to know how much liquidity you need. Asset prices change daily and over the long run we expect them to increase in value. But if we are forced to sell into a correction or down market to make cash available, it can spell trouble. When possible, please tell us in advance (3 to 6 months) of your need for liquidity or cash.
CTMA takes great pride in being your fiduciary and we take even greater pride in knowing you trust us to help with your wealth management …..Thank You!