November 13, 2019
Yesterday, I was lucky enough to attend the 2019 Professional Investor Conference at Goldman Sachs headquarters in New York City. It was a tremendous event that 263 (representing 45 states) of the country’s top advisors participated in. I was there from 7am until 9pm and inundated with data and charts. Presenters on International equities, Fixed Income, Politics and Artificial Intelligence were the highlights of the day.
The charts below give you a pretty good idea of their macro view:
Chart #1 Shows that the economy is in good shape as defined by projected economic and earning growth, solid household balance sheets, and accommodative central bankers.
Chart #2 Shows where the potential vulnerabilities to economic expansion potentially lie. Trade tariffs, liquidity issues caused by algorithmic trading, and trouble finding qualified workers.
Chart #3 Recent volatility versus historic norms. Bottom line is the last few years the markets have been much calmer than they have historically. Be prepared for heightened volatility but understand this is “normal”.
Chart #4 Big data is becoming more and more important for all businesses. The info gleaned from this data will make business decisions easier for corporations. 90% of all data has been produced in the last two years!
Chart #5 Change in the world’s largest companies over the past 15 years. Only one company on both lists (Microsoft). More technology companies, more international companies. Do not look in the rearview mirror, keep your eye on where we are going.