Skip to main content

Brexit: Keep Calm and Carry On

June 27, 2016 | By Charles Lowenhaupt

The UK vote to leave the EU is an epochal event. Its ramifications will be substantial for Europe and the world. No one knows what will happen next, but the passage of time will offer knowledge we do not have now.

Most immediately, the results have included dramatic drops in world markets. The Dow Jones Industrial Average fell 610 points, losing 3.4% of its value on the day after the Brexit vote was taken. We are likely to see continued volatility in the markets.

At times like this, the natural question is, “What should I do?” In our view, you should do what you should always do – remain thoughtful and measured.Read More

Lessons in Charitable LLCs: Is it Really a Sea Change?

June 17, 2016 | By Charles Lowenhaupt

The so-called “charitable” LLC has been getting some good press lately.

A month ago, ran a story entitled, “A Sea Change in High-Net-Worth Philanthropy?” In December, The New York Times reported that Mark Zuckerberg and his wife, Priscilla, created an LLC to help give away 99% of their wealth.

In both instances, the media pointed out that this legal structure is gaining favor among those with significant wealth – billionaires and deca-millionaires.

So what’s all the fuss is about? I’m really not certain, actually.Read More

Forget All The Misdeeds – Just Trust Us

May 20, 2016 | By Charles Lowenhaupt

Cerulli Associates says that US high net worth clients prefer to hold their money at wirehouses, private banks and trust companies. This includes clients with more than $20 million dollars in that group using the wirehouses, private banks and trust companies.

Since the financial crisis in 2008, the world’s 20 largest banks have paid more than $235 billion in fines. One might ask why, after years of misbehavior by many institutions, are wealthy investors still relying on them? One might also ask how the brokerage industry can continue to attract those wealth holders given all the misdeeds and the daily fines and penalties they continue to rack up?Read More

On Privacy And The “Panama Papers”

April 6, 2016 | By Charles Lowenhaupt

The leak of 11 million documents (“The Panama Papers”) from the files of a Panama law firm, Mossack Fonseca, represents an unprecedented exposure of what is considered highly confidential information about the secret financial dealings of the some of the world’s highest profile leaders and wealthiest individuals.Read More

Bridging The Generation Gap: What is the Wealth For?

February 25, 2016 | By Charles Lowenhuapt

Significant wealth and family dynamics are always complex, but some aspects don’t change from generation to generation—or from continent to continent.

I was reminded of that during a recent trip to Sydney. Speaking at an event with a number of wealth holders and wealth inheritors, I had numerous conversations I’ve heard repeated again and again in the U.S., Europe and Asia. They go like this: Wealth creators say their children are aimless and lack their passion and direction. Family money, they say, has made their adult children soft. They bemoan the fact that the children lack “motivation.”
 For their part, adult children complain that their parents are
 too controlling. The children say they are passionate about
 their ideas and their future, but their overbearing parents 
are unwilling to help them use a small portion of the family
 fortune to change the world or fund their projects.Read More

Zuckerberg Example: Demonstrating What The Wealth Is For

December 17, 2015 | By Charles Lowenhaupt

The birth of a child is a wondrous event, and all the more if you’re one of the richest – and most thoughtful – people in the world.

On “Giving Tuesday” two weeks ago, Facebook Founder Mark Zuckerberg and his wife, Priscilla Chan, announced the birth of their first child, a daughter Max. At the same time, in a 2,200-word letter to Max, they pledged that 99% of their Facebook stock will go to charitable purposes to promote equality and human potential. The shares, currently valued at $45 billion, would be one of the world’s largest gifts ever. It puts Zuckerberg on par with philanthropists Warren Buffet and Bill Gates, two of the world’s most generous givers.

Not surprisingly, an act of this magnitude elicits a lot of commentary and deservedly so. Bill and Melinda Gates said the gift is “an inspiration to us and the world.” Philanthropist and former New York City Mayor Michael Bloomberg said, “when it comes to philanthropy, 30 is the new 70.”Read More

Why Investors Are Concerned

By Donna Gilding

Everywhere you look these days, investors are concerned about market risk. Some of the biggest risks facing investors today are fears about the impact of changes to US monetary policy, the resilience of the Eurozone, the strength of the US equity markets, the lack of potential in the global fixed-income markets and the strength of China’s stock market.

The heightened market uncertainty, and the perceived lack of opportunity in the US equity and fixed-income markets, has encouraged investors to funnel vast sums of money to alternative assets. This surge of money into private equity, hedge funds and infrastructure funds has raised questions about the ability of alternative managers to deliver the exceptional returns that many investors are seeking.Read More

Second Quarter 2015 Market Review

By Donna Gilding

The month of June was a pretty lousy month across the board. Equities and fixed income posted negative returns. The quarter was lackluster, especially for interest-rate sensitive securities such as REITs and MLPs. On a year-to-date basis, US and emerging markets small cap stocks have been the best performers. The Russell Microcap, for example, is up 2.80% and emerging markets small cap is up 8.25%.Read More

The Export-Import Bank: Why it Still Matters

By Donna Gilding

The Export-Import Bank was created in February 1934, as part of the New Deal, to finance trade with the newly established Soviet Union. A second bank was created a month later to finance trade with Cuba and shortly thereafter expanded to include all countries with the exception of the Soviet Union. Congress passed legislation to combine the two banks in 1935. They also granted the unified bank more powers along with more capital. While the Bank did extend credit to a few countries, such as Italy and China prior to World War II, its primary efforts were concentrated on Latin America as part of the Good Neighbor Policy.Read More

Will Consumers Spend the Oil Dividend?

By Donna Gilding

In the latter half of last year, the price of crude oil dropped by over 50%. This was soon followed by a significant decline in the price of gasoline for motorists. It was assumed that this drop in price would have freed up money to spend elsewhere. The markets bet on this. The run-up in the US stocks last year reflected the belief that cheaper oil would act as a stimulus to the economy. This, in turn, would allow the Fed to increase rates, attract funds to the US, and push up the dollar.Read More

Back to top
Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Consent to display content from - Youtube
Consent to display content from - Vimeo
Google Maps
Consent to display content from - Google