Investec hosted its live "State of the Markets" event on Thursday, January 30th, at the Royal Sonesta Hotel in Houston.
Clients attending the event heard presentations from John and Daniel Goott, Investec principals, on economic and market events of 2019 as well as on their outlook for investors in 2020. John opened the event, thanking clients for attending, and noting that the firm has now been in business for over 35 years. John announced some staff changes within the firm and spoke of his desire to continue working with clients while backing away from many of the more operational aspects of the firm.
Daniel went on to provide market commentary, noting that 2019, quite opposite from 2018, was a year in which almost all asset classes provided positive returns. Looking forward, we are cautiously optimistic about financial markets in 2020. Factors which may have derailed the markets such as the U.S.-China trade war and Brexit appear to have been mitigated for now. Daniel elaborated on how Investec positions client portfolios to withstand a range of market/economic scenarios.
Daniel Goott, Principal, discussed market outlook with clients.
Senior Wealth Advisor Doug Garrison spoke about the SECURE Act, legislation passed late last year, which may impact clients in various ways. Non-spousal beneficiaries of client IRAs were generally able to stretch required distributions over their lifetimes under previous law. With the passage of the SECURE Act, such beneficiaries will generally be required to take full distribution of their inherited IRAs over no more than 10 years following the death of the IRA owner. A positive development from the Act for some clients with IRAs is the extension of the age at which minimum required distributions must begin from 70-1/2 to 72. Doug encouraged clients to discuss their specific circumstances with their advisor, as there are exceptions and nuances to the law which make it important to understand the facts and objectives of each client situation.
Senior Wealth Advisor, Doug Garrison, spoke on the recently passed SECURE Act.
Following the presentations was a discussion between John Goott and Trey Miller of First Eagle Investment Management, whose First Eagle Global Fund has been a long-term holding in many of our client portfolios. First Eagle Global managers seek to build the fund's portfolio using a "bottom-up" approach in which they identify companies that can be bought with a "margin of safety" in price. Trey provided First Eagle's views on market conditions and highlighted their value-based approach to investing. Trey also reviewed the importance of geopolitical concerns for global investors.
Trey Miller, First Eagle Investment Management, and John Goott, Founding Principal, discussed global markets.
At the conclusion of the presentations, clients and Investec staff enjoyed a lunch at the hotel. Based on positive client feedback, Investec plans to repeat the live "State of the Markets" event each year. A webinar-based presentation of the event occurred on the afternoon of January 30th.