Jeffrey Jackman

December indigestion caused by the Federal Reserve's comments today? The S&P was humming along until the FOMC cut 25 bps as expected, and the changes to the statement were trivial (although the vote to cut wasn’t unanimous). Chairman Powell wasn’t a reassuring voice at this meeting, and the market’s confusion led to hawkish projections and speculations for 2025. The S&P 500 closed at the day's lows, -3%. Capital flow was heavy at 145%. Today's move lower in the stock market was significant. We’re below the 50-day moving average for the first time since September. We’re not oversold (yet), and we’re (only) back at mid-October levels. From a technical standpoint, the rest of December should be a race for the exits….but dip-buyers will (most likely?) do their thing. It's worked for the last 12+ years, so why stop now? Considering today’s drop is rooted in a market unprepared for a Fed that wasn’t gung-ho with spiking the punch bowl a lot more, it could mean that once investors relax and think, they won’t believe this is all that bearish. If that’s the case, watch for an enjoyable bounce back. In summary, the fundamental landscape isn’t radically altered; however, the emotional landscape temporarily is.

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Interesting article from Douglas Appell in Pensions & Investments about the post-ZIRP, “higher for longer” interest rate environment that boils down to advocating for the pursuit of satisfactory investment outcomes that are relevant to asset owners’ actual spending needs and goals, rather than continuing the historically common practice – and expected future folly – of tethering one’s equity beta to that of an equity benchmark whose performance from today’s elevated levels is widely expected to be sluggish and insufficient to fund minimum liabilities (ie: payout rates, actuarial hurdles, spending goals, etc.).   Quoting the inimitable Ben Phillips, “In that world, the relevant benchmark becomes the client’s required cash flows.”   Fresh perspectives and new ideas are warranted. Satisfactory outcomes not benchmarks.

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If you think portfolio risk management is just about diversification, think again. This article sheds light on some surprising strategies that challenge common perceptions. Here are some thought-provoking takeaways: - Did you know that reducing the number of investments in a portfolio can sometimes actually decrease risks? It's all about strategic selection. - Contrary to popular belief, actively managing risk doesn't necessarily mean more frequent trading. In fact, a hands-off approach can be a smart move. - One of the key points discussed is the importance of understanding the correlation between investments, a factor often overlooked in risk management strategies. - Asymmetric risk and the role it plays in portfolio management is explored, offering a fresh perspective on balancing risk and return. - Ever considered tail risk hedging? This article dives into this lesser-known strategy that can enhance risk management effectiveness. Share your thoughts and feelings on these unconventional risk management strategies. https://lnkd.in/ecgSpH93

Great read Zhiwei Ren!

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“Legacy planning” hopefully will continue to replace “estate planning”. Wealtholders deeply care about passing family values down every bit as much or more than traditional estate planning focus. Philanthropic planning becomes a multi-generational endeavor for ultra high net worth families. I also agree that personal flourishing is one of the highest priorities for UHNW wealtholders. Some valuable insights are shared here.

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Should be an interesting conversation on preparing businesses for sale in todays market. Please join if you can.

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Wellington Management is thrilled to have been named “LDI Manager of the Year” (mega category) by @CIO Magazine as part of their 2024 Industry Innovation Awards program. Director of Corporate Pension Strategies Ryan Randolph was honored to accept on behalf of our LDI team at the Awards ceremony in NYC. Learn more about this accomplishment and the Awards program here: https://lnkd.in/eRfRpwhT Wellington Management did not pay a fee to be considered for this award. Winners were selected by CIO Magazine after reviewing written submissions. The award winners were announced on December 10, 2024, a two-part submission was made on September 19, 2024 and was judged based on written responses about Wellington’s liability-driven investing business. Wellington Management was the only winner in the LDI (mega) category, which was judged based on CIO Magazine’s criteria. The award may not be representative of any one client’s experience. The award is not indicative of Wellington Management’s future performance. Past performance is no guarantee of future results. #LDI #CorporateDB #pensions

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Wellington Management is thrilled to have been named “LDI Manager of the Year” (mega category) by @CIO Magazine as part of their 2024 Industry Innovation Awards program. Director of Corporate Pension Strategies Ryan Randolph was honored to accept on behalf of our LDI team at the Awards ceremony in NYC. Learn more about this accomplishment and the Awards program here: https://lnkd.in/eZhpVE3v Wellington Management did not pay a fee to be considered for this award. Winners were selected by CIO Magazine after reviewing written submissions. The award winners were announced on December 10, 2024, a two-part submission was made on September 19, 2024 and was judged based on written responses about Wellington’s liability-driven investing business. Wellington Management was the only winner in the LDI (mega) category, which was judged based on CIO Magazine’s criteria. The award may not be representative of any one client’s experience. The award is not indicative of Wellington Management’s future performance. Past performance is no guarantee of future results. #LDI #CorporateDB #pensions

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Your financial journey deserves a partner who values your goals as much as you do. At Terra Nova Asset Management, we focus on delivering personalized strategies to help you pursue what matters most. Learn more about who we are and what we do: https://terranovausa.com/

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Back to galactic HQ for “ETFs In Depth” today in midtown Manhattan hosted by Eric Balchunas and team at Bloomberg Intelligence. Expecting typical high value industry overview, a little spice, and some drama. Typical flat landscape view of morning near Princeton NJ. Mode 2/3 today: Electric train after driving BEV from Mainline PA; final mode will be bipedal up the gritty sidewalks of 9th Ave N. Should be useful compare and contrast to yesterday’s ESG trends event as today features every RIA and hedge fund’s fav investment tool - the exchange traded fund. Hoping there’s no re-platforming the anger-attention peddlers. Like the vainglorious #financebro ego from THAT grifter ETF last year whining about shareholders at AGMs. The “complaint” was investor cares to know if megacorp was doing the work of cleaning up their pollution. [Shock! Horror!] #etf #etfinvesting #investmrnt #strategy #ria #exchanges #exchangetraded #yield #crypto

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In this month’s First Eagle Alternative Credit update, Portfolio Manager and Senior Alternatives Strategist Larry Holzenthaler explains how repricing drove spread compression in 2024 and where the team is seeking relative value while keeping overall credit quality at fairly prudent levels. https://bit.ly/3DwAiiY

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It was great to be back in Boston last week, reconnecting with returning Institute members and meeting new market and investment leaders! We are excited for the events and research areas we have coming up in the next few months! #ocio #investmentsolutions #investmentmanagement #investmentconsulting

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In this month’s First Eagle Alternative Credit update, Portfolio Manager and Senior Alternatives Strategist Larry Holzenthaler explains how repricing drove spread compression in 2024 and where the team is seeking relative value while keeping overall credit quality at fairly prudent levels. https://bit.ly/3DwAiiY

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In the latest edition of Research Viewpoints, Oppenheimer Asset Management’s Consulting and Alternative Investment teams share their view that while mega-cap stocks appear extended, there may be opportunities in what they find to be reasonably valued segments like large cap value, small cap equities, core fixed income, and diversifying strategies. Read about this and more in our latest edition.

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Sharp increase in 6-month employment expectations for Philadelphia Fed Manufacturing Index in November … definitively exiting slump over past couple years 

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Boston, MA – June 11, 2024 – After over 30+ years on the buy side working at firms such as Fidelity Investments, Wellington Management and two hedge funds run by former Fidelity fund managers, I am excited to announce the launch of my new website https://lnkd.in/e3SZhR3p, where I’ll have my first retail stock and ETF trading idea service.   After leaving Wellington Management in 2016, I founded Cerundolo Investment Research to provide a research product that would help both the long only and long/short fund managers, long and short ideas across U.S. and European equity markets. After a number of social media discussions on X spaces, I received requests from people looking for a retail product that would reflect the ideas that were provided to the institutional clients I was working with. After more requests, and time to figure out how to provide a retail product that would not conflict with my institutional product, I decided to launch the new site with two retail offerings. Follow the link to see what our research offering provides.  Be assured that the low-price offering is one to help give back to both young and seasoned individuals who are as excited about stock investing as I am. The ideas generated have a time-tested systematic approach, which becomes a holding in a model portfolio that is shared with clients. https://lnkd.in/enaGPYCh

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Recent survey from NABE shows significant uptick this year in % of respondents saying primary challenge will be trade uncertainty … attracting/retaining quality workforce has declined significantly as a challenge 

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