November 2023 Insights
Insights: November 2023 Edition
“Let us be grateful to the people who make us happy; they are the charming gardeners who make our souls blossom.” – Marcel Proust
As we step into November, amidst the echoes of Halloween and the anticipation of Thanksgiving, I find myself eagerly awaiting the ski season after the recent snow. First and foremost, I want to express my deepest gratitude to each one of you for entrusting me and my esteemed alternative investment partners with your financial endeavors. Your confidence is the cornerstone of our collaboration, and I am committed to navigating these dynamic times in pursuit of your goals.
As some of you know, I am privileged to serve on several boards, including the Ah Haa School for the Arts in Telluride. Prior to finance, I spearheaded Martha Stewart's nationwide events program from NYC. This unique blend of creativity and publishing passion continues through the American Academy of Bookbinding and Ah Haa, enriching lives with artistry. For those local to the area, I extend an invitation to explore the New Year's Eve event and a series of chef dinners, curated by my eldest son, at Ah Haa. I “pitched” the idea given what I think are a lack of great NYE events in town, I hope to see some of you there!
Now, turning to matters of finance, I recently executed active rebalancing to position advantageously in anticipation of forthcoming opportunities. I am pleased with the timing of this move, and there will be more to come in the ensuing months.
Beyond the Federal Reserve and interest rates, the focal point of current investment discourse harks back to a subject I extensively addressed in May: the monumental debt that has now captured the attention of a broader audience, provoking questions about its sustainability. Government spending has surged by 14% in 2023 thus far. The current federal debt stands at a staggering $33 trillion, a figure that may escalate due to escalating geopolitical tensions, the government's prolific issuance of bonds into an already inundated global financial system, and increasing costs of servicing the debt, undoubtedly a formidable challenge in terms of repayment. US Treasuries currently don’t have the demand the government was hoping for.
As we witness a redefinition of recession dating back to 2022, marked by increased government expenditure and diminished revenue, the ripple effects are felt across markets, reflected in the performance of the S&P 500, Nasdaq, and Dow. This underscores the importance of our recent rebalancing and the need for vigilance.
In the spirit of progress, I am pleased to announce a new partnership commencing in November, focused on real asset investing, including direct precious metal investments. This development excites me greatly, and I will be in touch with those for whom these strategies may be a prudent allocation. I remain committed to offering options via SMAs through ZEGA and distinctive private equity and hedge funds through Crystal Capital. In reviewing a combined ZEGA strategy over the past fortnight, we've seen an impressive 27% increase since its inception roughly two years ago. While I cannot guarantee future results, this is a notable indicator, especially in the face of a volatile market environment. Alternative investments such as these have unique requirements, liquidity constraints, and must be risk appropriate for each investor.
It is worth reiterating that while I operate as a boutique firm, the dynamic is straightforward: instead of being an employee of Charles Schwab, I have the autonomy to chart the best course for clients, devoid of firm mandates, answerable only to you, my clients. This alliance is empowered by one of the industry's largest custodians, creating a potent synergy. With the inclusion of my alternative investment partners, I am hard-pressed to envision a more compelling proposition.
In 2022, while many experienced downturns in their investments, my clients thrived. This success is emblematic of the active investment approach I adopt, which empowers us to seize opportunities even when market indicators waver. Please do not hesitate to reach out with any queries or concerns.
Wishing you a prosperous and fulfilling month ahead.
Warm regards,
Lisa Durant
President & Founder, Lion’s Eye Wealth
