- 2020 recap – largest decline in market and largest recovery, largest Fed bailout, first time we experienced negative oil prices, negative appreciation in real estate and best November for S&P and small cap stocks.
- Reasons to believe that inflation may come back, and likely to have major issues with monetary policy.
- Agreed with Sue’s comments
- Unequal harm from Covid (poorer people getting hit worse)
- 2020 was a great year for equities, and PE. Not great for real estate (hospitality companies – down as much as 50%) and energy.
- Hoping for some stabilization in 2021 and believes that rotation into value will continue.
- Investors will still be interested in hedge funds and other “riskier assets.”
- Should focus on trying to invest with the best managers.
- The push for diversity will continue.
- US large cap and international equity manager.
- Surprised by market being up so much in 2020.
- Less surprising is that even though she sees a rotation to value, growth has still outperformed. Growth – earnings forecasts only went down 5%, value 20%.
- 2021 starting to think about rewinding some of 2020.
- Value rotation will continue; value performs best after recession, consumer spending will rebound.
- Scars of Covid-19 will be deep.
- Wealth advisor – soup to nuts practice and clients’ investment allocations are generally successful, if clients stick to the plan.
- She invests in all asset classes. Clients still need to be invested and not trying to time the market.
- Stock market creates wealth.
- Asset allocation is critical as is diversifying. Important to max out tax deferred vehicles.
- Beginning of 2020, more PE companies bought out/IPO’ed than any year in her career.
- Formal discussion followed by Q&A.