Seeking Returns in Times of Uncertainty

The only certainty in today's global environment is that uncertainty reigns. Geopolitical turmoil, ongoing inflation, energy crises, and leading indicators of a budding recession create a storm of investment insecurity. Central banks in the US and globally are struggling to stabilize inflation. Equity markets remain turbulent against a backdrop of the US Federal Reserve’s iterative 75 BPS monthly interest rate increases. Currencies in Europe, the UK, and other countries continue to lose value against the US dollar with little relief. Experts expect continued market volatility to be the theme of the remainder of 2022, with an increasingly sluggish economy reinforcing the malaise. Even typically positive harbingers like a robust real estate market and strong labor pool aren’t the beneficial economic variables they appear to be. Both mask undergirding economic turbulence as the former prices middle-class Americans out of home ownership, and the latter directly contributes to rising inflation by increasing demand against struggling supplies. 

Against this landscape, investors struggle to find safe havens for their capital and continually seek investments to withstand market turbulence and generate alpha to defeat inflation.

The bull market of the past decade amplifies the complexity of today's bear market by serving as a stark contrast. Many independent investors are adrift with plunging net worth as stocks fluctuate and the rising interest rates drive real estate values down. Financial advisors are hard-pressed to deliver superior returns to their clients while reassuring those who've never experienced volatility as we see today.

Because of this volatility and doubt, alternative assets are becoming increasingly attractive to investors seeking non-correlated returns or portfolio diversification. In exchange for delayed liquidity, institutional investors, high net worth individuals, and family offices have been allocating to the alternative asset classes for decades already. 

Family Offices increase their allocations to private equity and venture capital based on UBS’s 2022 Global Family Office report. It is notable that direct investments increase year-over-year since 2019 while allocations to funds and fund-of-funds stay around 8%.

Source: UBS Family Office Report 2022

Featured
Birkenstock's IPO: A Tapestry of Heritage and Modern Finance
Birkenstock's IPO: A Tapestry of Heritage and Modern Finance

Unraveling the layers of Birkenstock's much-anticipated IPO: Discover how this iconic brand's blend of heritage and modern strategy positions itself amid industry challenges and opportunities. Dive into the narrative of craftsmanship meets finance, and why Birkenstock's transition to public trading is making headlines. #BirkenstockIPO #FootwearFinance #BusinessInsights

The Unstoppable Journey of Technological Evolution
The Unstoppable Journey of Technological Evolution

From the earliest flint and bone tools to cutting-edge AI models, technology follows an inescapable evolutionary trajectory of mass diffusion, becoming cheaper, more capable, and more integral to our lives. As we stand on the precipice of the AI revolution, it's crucial to understand this pattern to navigate both the immense opportunities and ethical challenges that inevitably lie ahead.

The Battle of AI Architectures: Evaluating Large Language Models vs. Generative AI
The Battle of AI Architectures: Evaluating Large Language Models vs. Generative AI

Large language models like GPT-3 and generative adversarial networks represent two leading AI architectures, but have important trade-offs - LLMs leverage statistical learning to excel at natural language generation and conversation, while GANs offer more customization and multimodal flexibility, but both introduce risks like inaccuracy and bias that require ongoing governance. Though distinct, combining their complementary strengths and mitigating limitations through responsible development could produce robust AI systems that automate efficiently while aligning with human values. The ideal techniques depend on use cases, but advancing LLMs and GANs together can maximize AI's potential to benefit business and society.

This website is a general communication being provided for informational purposes only. It is educational and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature, or other purposes in any jurisdiction, nor is it a commitment to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical, and for illustration purposes only. This material does not contain sufficient information to support an investment decision, and it should not be relied upon by you in evaluating the merits of investing in any securities or products. Investors should ensure that they obtain all relevant information before investing. Any forecasts, figures, opinions, or investment techniques and strategies are subject to change and may not come to pass. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given, and no liability in respect of any error or omission is accepted. Investments involve risks, the value of investments and the income from them may fluctuate under market conditions and taxation agreements, and investors may not get back the full amount invested. Past performance and yields are not reliable indicators of current and future results. Consult with your CPA, attorney, or financial advisor before investing. Financial and operating risks are significant when investing in private companies. Loss of an Investor’s entire investment is possible and can easily occur. Past performance is not a guarantee of future returns. Before entering into any transaction, investors should determine any economic risks and benefits, as well as any legal, tax and accounting consequences of doing so, as well as their ability to assume such risks. Forecasts, calculations, or estimates presented are subject to change and may not come to pass.
This website is not an offering.