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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  • Canary In The Coalmine

    Thursday, July 23, 2015

    Posted by: Matthias Paul Kuhlmey

    It is a common understanding that a “canary in the coalmine” acts as a metaphor for impending danger. Quite understandably, investors are always on the lookout for this proverbial little bird to guide decision-making, either by avoiding losses or taking advantage of opportunities presented by increased volatility. Yet, these days, we have to wonder if the proper collective focus guiding the process of avoiding danger is being applied. With an obsession to dissect day-to-day moves in equity markets, especially led by the mainstream media, most investors have failed to notice (or at least consider) that volatility in most asset classes (vs. equities) has increased sharply over the last year—potentially foreshadowing more significant issues to come, and also that we may rest with a false sense of security regarding our investments.

    To continue reading, please click here for the full article.

  • Bulltrap Made in China

    Thursday, July 16, 2015

    Posted by: Matthias Paul Kuhlmey

    There has been a growing recognition that China can be complicated, not only considering the seamless integration of this emerging superpower into an already tightly-knit world economy (and related adaptation of global financial standards), but also with respect to the question of how economic progress is (or should be) reported to the outside world. In comparison to a number of other emerging “hotspots,” with Greece and Puerto Rico serving as recent examples, China’s significant domestic equity market meltdown should be regarded as truly complicated and likely entirely “made in China.”

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  • Spirits of a Material World

    Monday, July 13, 2015

    Posted by: Matthias Paul Kuhlmey

    The European showdown is back on and, as much as opinions are divided, we have to recognize that issues related to Greece are symptomatic of the deep-rooted flaws of Europe’s united economy (EU) and especially its monetary union (EMU). The cry for austerity by creditors may reflect a desire to heal conditions “on the go,” but the time may not be right to enforce principles that were largely disregarded during the good times, particularly the stability criteria laid out in the original Maastricht Treaty (a binding contract between EMU nations). As important as the debate regarding the accumulation of national debt is, we have to note that, for most countries, swelling government deficits and related additional accumulation of obligations were not the cause, but rather the result, of the 2007-08 Global Financial Crisis. Greece, however, has been different from the “get-go.”.

    To continue reading, please click here for the full article.

  • Social Club

    Monday, July 6, 2015

    Posted by: Matthias Paul Kuhlmey

    As always, everything depends on the point of view one chooses to take. What has been generally considered a “monetary virtue” is in need of a more refined understanding: social investing. With trillions of dollars chasing the opportunity set, investors need to recognize and differentiate their choices – not only by nuances of proper definitions, but also by the very approach and scope of a given asset manager. There are three main categories that broadly sum up the investment landscape in the social space: Socially Responsible Investing (SRI), Impact Investing (II), and Environmental, Social, and Governance Investing (ESG).

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  • You Spin Me Right Round

    Thursday, June 25, 2015

    Posted by: Matthias Paul Kuhlmey

    My two daughters are still at an age where they “hit” every playground with eager excitement. Observing them is quite interesting, and recently left me to consider a once-central thesis of physics that may also apply to financial markets (nerd father alert). When taking a turn on the merry-go-round, a question to ponder is whether my girls are spinning around the world, or if the world is instead moving around them; i.e., what is fixed, and what is not, at least from their perspective? Equally uncertain is the collective opinion when it comes to global monetary policy and asset prices. After our previous entries, Apex 2015: An Unobstructed View and Old Medicine In New Bottles, this is the third blog exploring the impact of a persistent low-rate environment and unprecedented quantitative easing.

    To continue reading, please click here for the full article.