48 Hours in Mexico City
Welcome to the Cutting Room Floor, a newsletter where I round up all my personal finance articles, put out exclusive content and interviews, and flag my favorite job listings from around LinkedIn.
I may be writing this from Jersey -- somehow I have ended up here after growing up on the West Coast, fuggedaboudit -- but the last few weeks have been a whirlwind trip around the globe.
That's because the Reuters "48 Hours" train chugs on, as we talk to luminaries of the business world about their favorite cities to travel to. This week featured a particularly culture-rich and insightful column from Darren Walker of the Ford Foundation .
Darren is an interesting and accomplished fellow who seems to be everywhere at all times, including writing his very good book "From Generosity to Justice". I'm ashamed to say I have never been to Mexico City, but his insider tips sure make it sound irresistible.
So before you head there, read this column, take his advice -- and pack me in your suitcase!
Another Reuters piece that came out this week was actually inspired by LinkedIn, because of something I kept seeing on my feed.
It's a new record put out by Wyclef Jean called "Paper Right," but it's not just any song -- this one was actually a collaboration with financial giant TIAA .
It is one answer to the broader question that financial services companies have been asking themselves -- how do you actually connect with younger demographics, and promote positive financial behaviors like retirement saving, without boring them to death?
It's going to take something new and innovative to break through all the noise and get their attention. So with Paper Right, they're trying it through music. It may work, it may not -- but at least they're trying something out of the box.
It was fun to talk to Wyclef for this one, which gave me a chance to use my Haitian Creole (long story). Thanks also to Chief Brand Officer Zara Mirza for chatting. Check it out here (and stream the song, it's pretty good!):
It's been a nice stretch of euphoria for the markets (thanks 英伟达 ). It's at the point where everyone thinks they're a genius, which is exactly what makes me nervous. That's usually when things go south.
So for some thoughts on the stock market for the year ahead, why not chat with someone who actually knows what they're talking about? TIAA 's Niladri Mukherjee ("Neel"), Chief Investment Officer for the firm's wealth management team, was kind enough to send along a few thoughts about how investors should approach this market moment.
Here's what he had to say.
Q: With the market at all-time highs, what's your take on where we are in the cycle right now?
A: The possibility of a soft landing has recently increased as data shows the growth is resilient and inflation is moderating. The Fed intends to cut rates into a strong economy, which could imply that the cycle has legs going forward.
Q: Are equity valuations looking too pricey, or is there still room to run here?
A: Stocks outside the mega-cap tech names are trading at reasonable valuations. If mega cap names don’t experience a valuation correction, which could happen if they continue to meet their earnings expectations, the laggards could experience a ‘catch up’ trade, which would support the overall index.
Q: What sectors/stocks in particular do you think offer attractive value right now?
A: Energy and large-cap financials. Energy prices can stay elevated given supply scarcity and if demand can remain stable in the event of either a soft landing and / or stimulus-driven recovery in China. Energy companies also have attractive dividend yields.
Large-cap financials, such as money center banks, can benefit from a steeper yield curve. Capital markets are improving, and regulatory risk concerns may be peaking for the bigger banks, which could lead to more buybacks.
Q: Interest rates are driving a lot right now ... what are your projections for what lies ahead?
A: Over the next 12 to 18 months, we expect interest rates to move lower across the curve due to a slowing economy, moderating inflation and more accommodative Fed policy. There are some structural trends, however, which can keep inflation and interest higher than it was prior to the pandemic. These include a higher level of government deficits and borrowing needs, competitive yields outside the U.S., and a scarcity of cheap labor and commodities.
Q: What market story do you think is not being covered enough?
A: Everyone is expecting a soft landing, but a mild recession may still be possible due to the lagged effects of the Fed’s tightening cycle and the potential for employers to shed workers to protect profit margins.
领英推荐
Q: What else should investors know for the year ahead?
A: Many investors have been asking if they should change their portfolios because of the presidential race, but they should not do that?based purely on their views of the candidates or who they think will win.
Election years are typically more volatile because of the policy uncertainty, but history suggests that the markets can power through the noise and finish higher. Stocks and bonds can do well. In the past 24 presidential elections, going back to 1928, only five years have experienced negative returns in either stocks or bonds. Stocks have produced average total returns of 10%, and for bonds, it’s been 5.5%.
These are tough times in the business, so we all have to stick together and help each other out whenever possible.
So, want to publicize a job opening? Send it to me! Want to find one that seems cool and interesting? Read the following!
As a Catholic, I will ask the appropriate saint of resumes and applications to smile upon you ... as soon as I find out who that is.
Stay tuned for next week's edition ... we will head down to Baltimore for some crabcakes and football with Kara Trent of Under Armour ... and get some helpful tips from Matt Schulz of LendingTree about how to change your financial life for the better, by asking the right questions.
As always, feel free to get in touch via Twitter (here), or email ([email protected]) -- to suggest story ideas, or hire me as a freelancer, or broadcast your job opening. Or maybe even to appear in this newsletter, if you've got something interesting to say!
-CT
Absolutely inspired by the passion and dedication in your journey! Just remember, as Steve Jobs once said, your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work - Stay motivated and keep pushing boundaries! ???
Chief Brand Officer at TIAA
1 年Great conversation Chris!