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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  • Rise of the Machines

    Thursday, January 28, 2016

    Posted by: Matthias Paul Kuhlmey

    http://wealthmanagement.com/viewpoints/rise-machines

    When every year global thought leaders come together in Davos, Switzerland, the world tunes in with great anticipation. There is hope of spotting the next big trend, or, at a minimum, finding relief from economic malaise. One of this year’s focal points fell right in the middle: a potentially perfect solution to a global economy stuck in a subpar growth environment, or, for the optimists among us, a futuristic tale of massive opportunity. Whereas some of our big thinkers already consider the trend of automation and rise of artificial intelligence to be the fourth industrial revolution, others are more subdued in their views, pointing to the risk of new socioeconomic imbalances that will form. The truth probably lies somewhere in between, and seeking clarity amidst the many contrasting viewpoints may give basis to an interesting, long-term investment opportunity.

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  • The Force Awakens

    Friday, January 15, 2016

     

    Posted by: Matthias Paul Kuhlmey

    http://wealthmanagement.com/viewpoints/force-awakens

    The usual pundits have been quick in addressing the source of market volatility and, more importantly, are eager to craft arguments as to why the issue appears to be an insulated one—specifically related to China. It is my conviction that, as time passes, a different story will be told. Not only have investors been hooked on accommodative measures provided by central banks, but many global imbalances since the onset of the global financial crisis in 2008/2009 remain unresolved. When market forces begin to fail investors, or an entire system altogether, political intervention has historically become the norm. With Chinese policymakers desperate to restore order, the world must anticipate actions that will impact free price formation and “bottle up” more volatility that is likely to later resurface.

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  • Winter Charts: A Season To Remember

    Thursday, January 7, 2016

    “Winter Charts” is a series of current financial topics explained in dots, lines, and only a few words—just the right “mix” to concisely convey ideas for critical thinking about investing.

    http://wealthmanagement.com/viewpoints/winter-charts-season-remember

    Starting a new year also means setting the “investment stopwatch” back to zero. Whereas I continue to criticize the short-term bias and focus on calendar years as opposed to preferably strategic, long-term investment outcomes, I have to recognize that there is an inherent emotional element investors apply in their assessment of risk and opportunity in markets. One of these aspects is anchored in the “seasonality” of market cycles. Think, for example, of the proverbial “year-end rally” or to “sell in May and go away;” each is often accepted as a basis for “smart” market-timing decisions.

    Only on a theoretical basis have investors been well-served to focus on select periods of the “investment calendar,” with more favorable market returns having been captured near the beginning and end of the average year. With this in mind, and given the divergence of respective calendar-year-end returns over a 30-year observed time period, making tactical allocation shifts based on expected outcomes is nothing short of a fool’s game.

    We have found that clients who are actively involved in planning and stating their financial objectives, paired with a critical view, will have better investment results. In this respect, it is not so important to simply “hit a number” linked to market outcomes, but rather to be grounded in realistic return expectations based on associated risks and impact on one’s long-term financial goals. Stay with this focus in 2016.

  • A Risk In Love

    Wednesday, January 6, 2016

    Posted by: Matthias Paul Kuhlmey

    As featured at HuffingtonPost.com

    http://www.huffingtonpost.com/matthias-paul-kuhlmey/a-risk-in-love_b_8855890.html

    It is easy enough to skip over an apparently cheesy title, especially coming from a guy in finance. For sure, in most minds, I am here to provide guidance allowing for numeric success through avoidance of risk, but this is exactly my issue: In pursuit of too many quantitative aspirations, the world seems to be losing its grip on what has been deemed essential to the foundation of modern civilization. Admittedly, today’s global society is facing many layers of challenges, some of which seem impossible to bear, and yet I am of the firm belief that our “wiring” as human beings allows us to address most, if not all of them, in a somewhat simple way–pretty much just by how we choose to live our lives.

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