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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  • Rewind

    Friday, August 29, 2014

    Posted By: Avita Sukhram

    Summer is a promissory note  signed in June, its long days spent and gone before you know it, and due to be repaid next January – Hal Borlan

    It’s been a pretty busy week across the globe considering it’s the unofficial last week of summer. Spinning our Google Earth (still very cool & fun), let’s get started in…

    The Middle East: Feeling Mixed.  While ISIL/ISIS continues to dominate headlines (based on the last few incidents, this is probably not even an exaggeration) and op-ed pages, there is still no plan for US intervention.  Many can appreciate this if the US is simply taking their time to figure things out from all angles and then taking action, but what won’t resonate well with Americans is waiting for this whole thing to self-destruct and ‘blow over’.   Meanwhile, Israel and Hamas have found peace (for now).   With more than 2,000 deaths reported, reconstruction efforts can begin in the war-torn region with only the hope that this time it’s for real.

    Europe: Russia is making a play for the Ukraine.  After months of tension-filled rebellion, Putin is finally going all in with Europe’s largest army for moral support (allegedly).   Not to take away from the severity of this situation and the many lives that have been lost, but who knew the Canadian delegation at NATO were comedians?? Better yet, we learned that Russia will not back down from a war… any war… even a Twitter war (they might as well have included the #sorrynotsorry).

    Africa: Ebola continues to spread across the continent with no end in sight.  In Libya, the power struggle resulted in their PM to resign.

    South America: Brazil’s recession and looming elections, Argentina’s debt deal woes, and Chile’s potential carbon tax are things we will be keeping an eye on over the remainder of 2014.

    North America: No longer can Americans make fun of Canadians (except Bieber, what was he thinking?) the sibling rivalry is over as Burger King acquires Tim Hortons (if you’ve never been, it’s pretty good stuff)  and immortalizes the phrase “tax inversion” (this should be fun ahead of the midterm elections).  In other news, former Presidents are still working, California’s Yes means Yes law, a few internet fake outs, US GDP rocks while Medicare costs are re-evaluated, and, finally, it was only a matter of time before scandal struck the ALS organization.

    Even though summer does not officially end until September 22nd, it is always Labor Day weekend that prepares us for these last dog days of summer and, hopefully, a song to remember it by.

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

    Other Interesting Links:

     

     

  • Lord Abbett Investment Perspectives – How Can We Keep Investors On Track?

    Monday, August 25, 2014

    Posted by: Matthias Paul Kuhlmey

    Over the next few weeks, we will have the privilege of publishing a number of video interviews with Milton Ezrati, Partner, Senior Economist and Market Strategist at Lord Abbett, to address some questions and concerns of our clients. Together we will discuss currently anticipated opportunities and risks of investing in stocks and bonds, as well as investment themes including the U.S. dollar, energy infrastructure, and the evolution of global trade. First, however, we propose that investors develop a framework specific to their respective situations. As we recently wrote for WealthManagement.com, creating a “contract with oneself” can help to maintain peace of mind while working toward long-term investment goals, especially during times of increased volatility. Please click here to view the interview.

  • Rewind

    Friday, August 22, 2014

    Posted By: Avita Sukhram

    War does not determine who is right – only who is left. – Bertrand Russell

    For the first time in Rewind history, we have a new format and I have been requested to discuss a topic that has been in the news for quite some time now and briefly mentioned in our previous Rewinds… ISIS.   So Andy Morse, I thank you and accept your challenge on a topic I’m not that knowledgeable (or crazy) about.

    Background: The term “ISIS” stands for “Islamic State of Iraq and Syria”.  It has been officially designated as a terrorist group by many countries (non-Muslim and Muslim alike) and groups, such as the United Nations.  The methods to the “success” (as the media refers to it) that ISIS has found in reaching their “goal” is truly abhorrent and US involvement is necessary at this point.  ISIS, you want our attention, well, you’ve got it. Good luck to you.  Instead of focusing on the humanitarian side of this issue (as is my usual preference), I am intrigued by the concept of their goal (loosely stated) in preparation for the worst of all possible outcomes: what if ISIS is successful in creating a “pure Islamic state”?

    In many Rewinds ago, we discussed civilian uprisings and rebellion and how the group wanting control needs to have a plan (any plan) once the battles are over.  This ‘raid and win’ concept is reminiscent of Alexander the Great or Caesar, empire-driven leaders that took over local lands by force. As the leaders as they are remembered to be, the ongoing management couldn’t have been easy (likely the reason empires fall).  Running a country in the 21st century is probably even more difficult, even if its citizens have the same religious ideology as its government (e.g. Afghanistan, Iran).  So even if ISIS massacres civilians and is well resourced right now, what happens when the war is over? Who will trade with this new country (not even North Korea I bet)? How will it continue to obtain resources?  Even if you have crude oil, many participating OPEC countries could refuse to trade and thus spark a global race for alternative energy sources. Further to this point, how do you educate the few citizens you have left to work in oil fields? Do you even have a youth generation and/or women to educate? What about money to pay for the security for your citizens when you declare war on the USA?

    In thinking about all of the things necessary in this day and age: healthcare, developing a middle class, a sustainable economy, government, enforcing rule of law, investing in your land for infrastructure and citizens for a peaceful society – all of which still affect the developed world – even if ISIS meets success, it can (and will) only be short lived.

    So as to not end the week on a negative note, this week’s “Other Interesting Links” section below highlights the good and the bad of what the world has to offer when you create a (somewhat) organized and peaceful society.

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

    Other Interesting Links:

  • Collective Wisdom MoneyLife Radio Show

    Wednesday, August 20, 2014

    Posted by: Matthias Paul Kuhlmey

    How are central bank policies affecting global interest rates? This morning, it was a great pleasure to make an appearance on Chuck Jaffe’s MoneyLife Show, along with my partners, Richard Steinberg and Stephen Rosen, to discuss historically low rates in Japan and Europe, the current slack in global growth, and which investments we favor in today’s investment environment. 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, August 15, 2014

    Posted By: Avita Sukhram

    Truth is tough. It will not break, like a bubble, at a touch; nay, you may kick it about all day, like a football, and it will be round and full at evening. – Mark Twain

    To be quite honest, this week, I’m not really sure where to begin.  A week ago, Michael Brown was shot multiple times by a police officer that has basically put this small town on the map (and not in a good way).  I’m sad about the fact that in 2014 it feels like the 1960s where individuals are still fighting for their basic civil rights and journalists have to remind law enforcement of our First amendment rights.   Have we not learned from history? Are we doomed to repeat it? Thinking about Trayvon Martin, I hope not.

    President Obama had his hands full while on vacation this week with riots in Missouri and foreign policy taking center stage (hey, at least Hillary has got his back…right?!)Things in the Ukraine are going about as well as…no, wait… that’s not good at all. Over in Iraq, ISIS keeps to its plans and in South America, Argentina is still in crisis (and it smells worse than the World Cup kind). In more domestic news, NASCAR and Cooper Union tries some new rules, Chuck Todd gets a new gig, Ebola outbreak update, fraud at Notre Dame, Coke makes a Monster deal, a SeaWorld controversy, and in celebrity news, beloved actor and comedian Robin Williams passed away this week.

    So here we are, only 2 weeks left of summer and it already feels like fall out (at least in NYC). My only solace of looming cooler temperatures is the fact that it’s almost football seasonYes, that’s right, I AM ready for some football! 

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

    Other Interesting Links:

  • Collective Wisdom MoneyLife Radio Show

    Wednesday, August 13, 2014

    Posted by: Matthias Paul Kuhlmey

    How should investors approach investing in Frontier Markets? This morning, it was a great pleasure to make an appearance on Chuck Jaffe’s MoneyLife Show, along with my colleague, Matt Harris, to discuss the macro “tailwinds” that are present in Africa and the benefits and risks of diversifying a portfolio with Frontier Market exposure. 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, August 8, 2014

    Posted By: Avita Sukhram

    I was hoping that this last month of summer would be spent thinking about fall fashion, back to school, and discussing all the crazy things celebrities do ahead of the fall elections.  Sadly this is not the case.

    Middle East tensions continue to rise without any end in sight:  Hamas and Israel have resumed fire after a 3 day truce expired and the U.S. starts airstrikes on terrorist group ISIS.  In Africa, the Ebola virus continues to spread causing the World Health Organization to declare an international public health emergency and the FDA to take action.  And further east,  Putin ups the ante (we aren’t so sure that’s a good idea).

    With only 3 months left in the election cycle, it will be interesting to see how these events turn out to affect the outcome of the U.S. midterm elections.  I won’t dwell on this as there’s plenty of time to talk about the election cycle in the coming weeks and there’s so much more: a CIA cover-up scandal, the Vanity Fair International Best Dressed list (did you make the list!?), a self-censored media, pending drone integration, and Hawaii is about to endure its first major storm in 22 years!

    And lastly, on this day in history, Richard Nixon resigned as the President of the United States, a turning point in our nation’s history that still lives in infamy.  As Nixon said (and as close to a confession as we will ever get), “I’m a fighter, I just didn’t want to quit. Also I thought it would be an admission of guilt, which of course it was,” he said. “And, also, I felt it would set a terribly bad precedent for the future.”  With how fast the world has changed in the last 40 years, I would hope telling the truth, owning up to your mistakes, and setting a good example is never a bad precedent.

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

    Other Interesting Links: