Money Clip

Blog by Matthias Paul Kuhlmey


Matthias Paul Kuhlmey is a Managing Director & Partner at HighTower Advisors, where he serves as wealth manager to High Net Worth and Ultra-High Net Worth Individuals, Family Offices, and Institutions.

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  • Collective Wisdom – MoneyLife Radio Show

    Wednesday, October 22, 2014

    Posted by: Matthias Paul Kuhlmey

    How should investors view the recent volatility in global markets? This morning, it was a great pleasure to make an appearance on Chuck Jaffe’s MoneyLife Show, along with my partners, Jeff Leventhal and David Molnar, to discuss investor complacency, the importance of a long-term investment perspective, and potential opportunities amid uncertainty and the “noise” of mainstream media. Please click here to listen.

    HighTower was designed specifically not to follow a single viewpoint, or “house view,” in Wall Street jargon. Consequently, as we do not have to sell product, but rather provide advice, our business model allows us to reduce or avoid many conflicts we may have faced earlier in our careers as financial advisors. As partners in our business, we take great pride and responsibility in sharing best practices and ideas to deliver excellence to our client

  • Rewind

    Friday, October 17, 2014

    Posted By: Avita Sukhram

    There is no great genius without a mixture of madness. – Aristotle 

    With unemployment at its lowest point in quite some time, this week I realized there are few jobs that still need to be filled that could help the continuing rate decline (and yes, we maintain our stance on equal pay for equal work!):

    Medical Genius Wanted: As Ebola makes it way west, right about now this would be greatly appreciated. And for the added importance effect, we will title it “Czar” (so as to not compete with Dame Jolie).

    Technology Genius Wanted:  Apple released the latest “what I didn’t know I needed to live” device, but as it turns out, I already have it. While Apple is a money-making machine, maybe they could lend a little help to SnapChat who’s still trying to figure it all out.

    Diplomatic Genius Wanted: Boko Haram (remember them?) has finally agreed to release the 200+ schoolgirls kidnapped back in April.  As of today, there isn’t much information as to how this sudden change of heart came about or even why.  We will keep an eye on this story to see how it all pans out.  The concerning part is the PTSD these young girls may suffer.  (And, I mean, who will play them & the hero in the movie?)

    Hacking Genius Wanted: Speaking of movies, remember “Catch Me If You Can” where a serial forger became integral to the FBI to combat counterfeiting? Well, if you are a hacker on the run, here’s opportunity knocking. Consumer security breaches are happening so often and it doesn’t seem likely to stop.  So until we can get some serious tech geniuses to get ahead of the game and help design relevant security, well…happy shopping.

    Policy Genius/Rockstar Wanted: I’m beginning to think that somewhere over the last few election cycles, politics reached a high point of ridiculousness and now we are all desensitized.  I mean really, how are we 3 weeks away from a potential political party shift  in the midterm elections and there are no standout stars going into the 2016 Presidential elections?? I mean, not even Joe Biden’s gaffes are making headlines.  All I’ve got is the Florida Governor’s race and what surmounted to “fanpocalypse” or “FanYourGround”.  (Sigh… okay those were pretty funny!)

    For many that don’t know, Rewind got started here at HighTower 2 years ago (Happy 2ndAnniversary!) on the craziness that was the October 2012 debates starring Mitt “binders full of women” Romney, Joe Biden, Paul Ryan (ha!) and President Obama (those really were the best of times).  So I hope it’s just me expecting just a little more madness from everyone (except the markets – talk about volatility!) and that it’s just the usual midterm doldrums.   At least there’s always a sports star to keep us entertained!

    We hope you had a great week and have a great weekend ahead!

    Other Interesting Links:

  • Pump Up The Vol

    Thursday, October 16, 2014

    494277207

    Posted by: Matthias Paul Kuhlmey

    As featured on WealthManagement.com: 

    http://wealthmanagement.com/viewpoints/pump-vol

    Recently, I was accused that my blogs have a somewhat “bearish undertone.” Whereas a defensive argument could be crafted, it is more important to report on facts and discontinue most of the economic illusion populated by mainstream media. Last week’s sharp increase in “vol” (or volatility, for the casual observer) of U.S. equities was a subtle reminder that financial markets cannot go up in perpetuity. From a global perspective, the reminder was delivered sooner; aside from most U.S. equities, numerous asset classes experienced significant downturns and corrections in the weeks before last – we were warned. There are now risks to monitor and opportunities to be claimed.

    What gets lost in the media’s translation is that our policymakers are worried as well. A distant headline over the long weekend postulated that the U.K and U.S., in a joint effort, will conduct “war games” to test the stability of their respective banking systems. Policymakers from both countries will “test” their responses, in case a U.S. bank with British operations should fail and vice versa. The IMF, in October’s Global Financial Stability Report (a worthwhile read), echoes the need to “game the system,” as global growth continues to rely heavily on accommodative policies that promote excessive economic risk-taking and financial (in)stability overall.

    With the IMF assessment in mind, our fears of (much) higher interest rates may turn out to be an old wives’ tale. Sharp increases in the price of economic financing to governments, businesses, and the consumer would be significantly counterproductive. To this point, we have experienced the slowest recovery on record: global economic performance across the board is at best mediocre, and, consequently, central banks and policymakers will have no choice but to further promote accommodative measures.

    What remains is “American Exceptionalism.” On a relative basis, the U.S. economy is much better positioned compared to other developed and developing nations. Nevertheless, and basis for caution, it may be too early for America to become the “engine” to the rest of the world. Given current status, global policymakers are racing for the same outcome, a concept historically known as “beggar thy neighbor.” Low rates and weak currencies are the “oil” for economic aspirations and competitiveness, but, in a global context, cannot be achieved for all parties involved, thus creating a breeding ground for international disagreement and political conflict.

    There is a silver lining. Recent volatility and economic slowdown have really shaken the commodity sector, especially in agricultural and energy-related goods (oil at 2010 low). Those developments will be highly beneficial to corporations and the consumer. U.S. domestic demand has been strengthening, and solid employment gains seem to have become the norm. Further, according to the IMF’s revisions to its global growth outlook, a significant risk is centered on developments in Europe, which is not exactly a new a story.  Economic soft-patches, especially in the U.S., may just be a function of secular stagnation, rather than a reverse in trend.

    As we recently discussed in “A Contract With Myself,” it is as critical as ever to ground financial decisions in a sound planning-based approach. Increasing volatility is not only a numeric outcome, but more so a psychological one. In the absence of clearly stated financial goals and objectives, clients have the tendency to “bail” on previously embraced investments, often the result of a recency bias (wanting to buy what has performed well). With volatility on the rise, advisors and their clients should prepare a “shopping list” to take advantage of falling prices and increasingly more attractive valuations, as a buying opportunity for long-term thematic investments.

  • COLLECTIVE WISDOM – MONEYLIFE RADIO SHOW

    Wednesday, October 15, 2014

    Posted by: Matthias Paul Kuhlmey

    How is technology impacting the evolution of consumer spending? This morning, it was a great pleasure to make an appearance on Chuck Jaffe’s MoneyLife Show, along with my colleagues, Richard Steinberg and Matt Harris, to discuss “disruptive” technologies, the significant impact such advancements have on our lives, and how to approach investing within the technology sector. Please click here to listen.

    HighTower was designed specifically not to follow a single viewpoint, or “house view,” in Wall Street jargon. Consequently, as we do not have to sell product, but rather provide advice, our business model allows us to reduce or avoid many conflicts we may have faced earlier in our careers as financial advisors. As partners in our business, we take great pride and responsibility in sharing best practices and ideas to deliver excellence to our clients.

  • Rewind

    Friday, October 10, 2014

    Posted By: Avita Sukhram

    Hitch your wagon to a star.  – Ralph Waldo Emerson

    In following Emerson’s line of thought, Malala Yousafzai  & Kailash Satyarthi became stars as they fittingly won the 2014 Nobel Peace Prize for, as the Committee stated,  “their struggle against the suppression of children and young people and for the right of all children to education.”   Their respective work to better the lives of those less fortunate is astounding and inspirational.

    This week seems like there were a few hints of “wagons being hitched” as President Obama may make a daring move with Gitmo,  consulting & tech firms gain popularity with MBAs, Amazon looks to make a shift,  bond market ETFs vie for their turn in the spotlight, broadcast journalism could be shaken up,  student protesters hold the line in Hong Kong, a theory is presented on maintaining the European Union, and a daring challenge is presented for the DJIA.

    In hitching my own wagon, they say you learn something new every day, well here’s a list of the top things I learned this week:

    We hope you had a great week and have a great weekend ahead!

    Other Interesting Links:

  • Collective Wisdom – MoneyLife Radio Show

    Wednesday, October 8, 2014

    Posted by: Matthias Paul Kuhlmey

    How should investors approach the commodities sector? This morning, it was a great pleasure to make an appearance on Chuck Jaffe’s MoneyLife Show, along with my colleagues, Rich Steinberg and Matt Harris, to discuss water as a long-term investment theme, correlations of commodities vs. traditional investments, and the technical outlook for gold miners. Please click here to listen.

    HighTower was designed specifically not to follow a single viewpoint, or “house view,” in Wall Street jargon. Consequently, as we do not have to sell product, but rather provide advice, our business model allows us to reduce or avoid many conflicts we may have faced earlier in our careers as financial advisors. As partners in our business, we take great pride and responsibility in sharing best practices and ideas to deliver excellence to our clients.

  • Rewind

    Friday, October 3, 2014

    Posted By: Avita Sukhram

    If you do not change direction, you may end up where you are heading. – Lao Tzu

    “Change” has become such an overused word, don’t ya think? It’s everywhere.  From politicians to businesses to technology, we are always trying to “change” something.  In theory the actual enactment of ‘change’ would be great, but why does it seem like we end up going nowhere fast.

    If you happened to check out any news this week, it was all about Ebola and climate change.  First, the Ebola virus makes its way to the US, which has many people concerned.  Everyone, that is, except Wall St.  Turns out, investors are very much bullish on a cure (and we hope that’s true since the death tolls are unreal).  In the world of climate change, it’s not any better.  Walruses washed ashore, NYC commuters bear the brunt of residual aftershocks, Tesla tweeted like Apple (which could’ve been misconstrued, which I’m surprised wasn’t), and politicians get called out… again!

    Biden makes another gaffe, the unemployment rate falls to 5.9%, Australia joins the “not a war” against ISIS/SyriaCould this be another proxy war?  JPMorgan Chase gets hacked; Brazilians cast their first round of votes, the battle for the US Senate continues on and Governors are watching their back, George Clooney gets married (never say never, eh?), Sweden takes a step, Hong Kong protests, the Secret Service is on the outs, and an ocean sized discovery!

    This week, we’ll keep things short and just remember that Rome wasn’t built in a day and change doesn’t happen overnight…

    We hope you had a great week and have a great weekend ahead!

    Other Interesting Links: