Compass Group just launched its first Brazilian local credit fund, managed by the local team from its Sao Paulo’s office, part of an integrated 50-strong investment professionals team across Latin America and the US.
Compass Group opened the Brazil office in 2018 and has been actively growing the local team whilst working on obtaining the local license to manage funds, granted in December of last year
As one of the largest asset managers in LatAm, with over USD 6b in AUM, Compass Group is bringing its regional credit expertise to the local market. This will be the first fund managed locally and the company has a strong pipeline planned for 2020. It will include other credit funds, domestic equity funds as well as feeder funds into offshore funds from global managers.
Compass Group has been investing in credit in Brazil for more than 20 years and this new experience sets a great and exciting challenge for the company
Pxfuel CC0. Climate Change and Planet Earth, Focus Theme for the 2020s
The U.S. stock market finished at an all-time high in December to end a strong quarter and an outstanding year. The advance reflected U.S. consumer confidence and spending built on the wide availability of jobs, rising incomes and easier financial conditions. Steady consumer spending supports moderate economic growth and is a buffer against the trade related manufacturing malaise.
Events to unfold during 2020 include trade war dynamics, the U.S. presidential election, and the rapidly evolving interconnectivity of Climate Change with our Planet and People and its effect on investment policy and sustainable profits.
Our focus theme for the 2020s is Climate Change and Planet Earth. We have integrated the analysis of environmental impacts into our broader investment process and seek to identify companies whose businesses may be threatened over a long time horizon by one of the three W’s – weather, water and waste. More importantly, we are looking for companies that will benefit from increased investment toward discovering solutions for today’s urgent environmental issues.
The conditions for an increase in global deal activity in 2020 are now in place. Strategic corporate buyers need deals to grow their top and bottom lines and industry consolidations are a catalyst for transactions. The value of announced deals was $3.8 trillion globally in 2019, down slightly from 2018, per Dealogic. Cross-border deals dropped 25%, but U.S. ‘mega’ deals topped the overall list and U.S. M&A was up 6% to $1.8 trillion boosted by the giant UTX/RTN deal. Trade, economic, and Brexit headline risks are fading, rates are low, and private equity shops now have about $2.4 trillion in cash for M&A, per Prequin. As a footnote, patient Unzio got their 5,100 yen ask price from buyout firm Lone Star. Activist investors were catalysts for 2019 deal activity and boardroom changes as 464 U.S. companies were targets through mid-December per Activist Insights. We expect M&A activity to pick up for small, mid-sized and microcap companies during 2020 as strategic and private equity buyers take a closer look at the attractive intrinsic values versus the market prices of these companies. We have consistently applied our fundamental-value stock selection process since 1977 and believe the recent trend toward value will broaden during 2020.
Column by Gabelli Funds, written by Michael Gabelli
__________________________________
To access our proprietary value investment methodology, and dedicated merger arbitrage portfolio we offer the following UCITS Funds in each discipline:
GAMCO MERGER ARBITRAGE
GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
Our objectives are to compound and preserve wealth over time, while remaining non-correlated to the broad global markets. We created our first dedicated merger fund 32 years ago. Since then, our merger performance has grown client assets at an annualized rate of approximately 10.7% gross and 7.6% net since 1985. Today, we manage assets on behalf of institutional and high net worth clients globally in a variety of fund structures and mandates.
Class I USD – LU0687944552
Class I EUR – LU0687944396
Class A USD – LU0687943745
Class A EUR – LU0687943661
Class R USD – LU1453360825
Class R EUR – LU1453361476
GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
Class I USD – LU1216601648
Class I EUR – LU1216601564
Class A USD – LU1216600913
Class A EUR – LU1216600673
Class R USD – LU1453359900
Class R EUR – LU1453360155
Disclaimer:
The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable statutes. In some countries the distribution of this publication may be restricted. It is your responsibility to find out what those restrictions are and observe them.
Some of the statements in this presentation may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect the manager’s current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. Such forward looking statements are based on an assessment of historical economic data, on the experience and current plans of the investment manager and/or certain advisors of the manager, and on the indicated sources. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved by the fund or the investments of the fund, as the occurrence of these events and the results of the fund are subject to various risks and uncertainties. The actual portfolio, and thus results, of the fund may differ substantially from those assumed in the forward looking statements. The manager and its affiliates will not undertake to update or review the forward looking statements contained in this presentation, whether as result of new information or any future event or otherwise.
ALLVP's partners, courtesy photo. Antonia Rojas se une a ALLVP como su nueva partner
Antonia Rojas has joined ALLVP as its third partner. Antonia is the first partner addition to Fernando Lelo de Larrea and Federico Antoni’s firm since its founding. Given her experience as an entrepreneur and investor, Antonia will focus her investing and board seat participation in startups reinventing the cities or working on the future of human capital.
‘When we founded ALLVP, we envisioned creating an organization that would outlive us. As Latin American tech reaches new highs, it is the best time to expand our partnership with one of the best investors of her generation. Antonia shares our passion for impact, commitment with founders and vision for the future of our firm.’ commented Fernando Lelo de Larrea.
Antonia first started investing with the international real estate division at Deka Bank in Frankfurt. Soon after, her passion for impact led her to start an education company in Chile and study a masters in impact investing at Hult Business School in San Francisco. In 2017, just after turning 27, Antonia co-founded Manutara Ventures, a leading seed capital firm based in Santiago, Chile. In November 2018, her work took her to Sao Paulo for the Techcrunch Battlefield where she and Fernando shared the judging panel for promising startups.
Antonia explained, ‘I met Fernando in an event in Brazil. There were impressive speakers from all over the world, but Fernando was, for me, the most insightful and clear in its vision for technology in the region. A few weeks later I met Federico in Santiago. Meeting the investor behind the biggest tech company in the country, Cornershop, was a big deal. And I wasn’t disappointed. We bonded immediately. He became my mentor as I continued my investment career.’
‘Although we may have more experience, Antonia is smarter, more resourceful and brings a fresh perspective to our portfolio and investment practice. Together, our now multi-generational and diverse firm will become a better partner for Latin American founders. Together, we’ll be able to seize the amazing Latin American VC opportunity of this decade.’ added Federico Antoni.
ALLVP is in the process of deploying its new fund 3 in Mexico, Colombia, Chile and beyond.
Wellington Management became the 13th asset manager in having international mutual funds highlighted by the Mexican Pension Funds Association, the Amafore, as funds the Afores could invest in.
As the Amafore confirmed to Funds Society, there are already 60 funds from which Afores can choose from, for diversification purposes.
The Boston firm, whose distribution in LatAm and Mexico is in charge of Compass Group, had already been selected in 2014 to receive a commodity investment mandate, by the then called, Afore Banamex.
The current list of authorized managers consists of:
AllianceBernstein
Amundi
AXA
BlackRock
Franklin Templeton
Investec
Janus Henderson
Jupiter
Morgan Stanley
Natixis
Schroders
Vanguard
Wellington Investments
Founded in 1928, Wellington Management is one of the largest independent investment management firms in the world. It has more than 1.1 trillion dollars in assets under management and operations in more than 60 countries.
In Bob Doll’s view of 2020, active managers and Donald Trump will win. “Our view is a more mediocre view, with a lot of frustration,” he mentioned during his yearly outlook while recommending to “focus more on alfa, own more high quality value vs expensive growth, have diversification both in terms of asset clases and geography, raise quality of the cash flow character, and watch wage rate increases to monitor inflation.”
In 2019, the chief equity strategist at Nuveen, made his predictions saying it was a tough year to forecast but that he was leaning towards a bullish view on stocks. He was mostly right, getting eight out of 10 correct.
Here are his top 10 predictions for 2020:
The world avoids recession in 2020 as U.S. GDP grows over 2% and global GDP grows over 3%.
Inflation and the 10-year U.S. Treasury yield end the year above 2% as the Fed stays on hold through the election.
Earnings fall short of expectations, partially due to rising wage rates.
Stocks, bonds and cash all return less than 5% for only the fourth time in 25 years.
Non-U.S. stocks outpace U.S. stocks as the dollar retreats.
Value and cyclicals outperform growth and defensive stocks.
Financials, technology and health care outperform utilities, real estate and consumer discretionary.
Active equity managers outperform their indexes for the first time in a decade.
The cold wars within the U.S. and between the U.S. and China continue.
The U.S. concludes a tumultuous political year with a status quo election.
For the full version of Bob Doll’s Ten Predictions for 2020 follow this link.
Pixabay CC0 Public Domain. It’s the Age of Asia When it Comes to Passport Power
As we enter the new decade, Asian countries have firmly established their lead on the Henley Passport Index, the original ranking of all the world’s passports according to the number of destinations their holders can access without a prior visa. For the third consecutive year, Japan has secured the top spot on the index — which is based on exclusive data from the International Air Transport Association (IATA) — with a visa-free/visa-on-arrival score of 191. Singapore holds onto its 2nd-place position with a score of 190, while South Korea drops down a rank to 3rd place alongside Germany, giving their passport holders visa-free/visa-on-arrival access to 189 destinations worldwide.
The US and the UK continue their downward trajectory on the index’s rankings. While both countries remain in the top 10, their shared 8th-place position is a significant decline from the number one spot they jointly held in 2015. Elsewhere in the top 10, Finland and Italy share 4th place, with a score of 188, while Denmark, Luxembourg, and Spain together hold 5th place, with a score of 187. The index’s historic success story remains the steady ascent of the UAE, which has climbed a remarkable 47 places over the past 10 years and now sits in 18th place, with a visa-free/visa-on-arrival score of 171. On the other end of the travel freedom spectrum, Afghanistan remains at the bottom of the index, with its nationals only able to visit a mere 26 destinations visa-free.
Dr. Christian H. Kaelin, Chairman of Henley & Partners and the inventor of the passport index concept, says the latest ranking provides a fascinating insight into a rapidly changing world. “Asian countries’ dominance of the top spots is a clear argument for the benefits of open-door policies and the introduction of mutually beneficial trade agreements. Over the past few years, we have seen the world adapt to mobility as a permanent condition of global life. The latest rankings show that the countries that embrace this reality are thriving, with their citizens enjoying ever-increasing passport power and the array of benefits that come with it.”
As ongoing research shows, these benefits are extensive. Using exclusive historical data from the Henley Passport Index, political science researchers Uğur Altundal and Ömer Zarpli, of Syracuse University and the University of Pittsburgh respectively, have found that there is a strongly positive correlation between travel freedom and other kinds of liberties – from the economic to the political, and even individual or human freedoms. Altundal and Zarpli observe that “there’s a distinct correlation between visa freedom and investment freedom, for instance. Similar to trade freedom, countries that rank highly in investment freedom generally have stronger passports. European states such as Austria, Malta, and Switzerland clearly show that countries with a business-friendly environment tend to score highly when it comes to passport power. Likewise, by using the Human Freedom Index, we found a strong correlation between personal freedom and travel freedom.”
Looking ahead: an increasingly pragmatic approach to migration
While the latest results from the Henley Passport Index show that globally, people are more mobile than ever before, they also indicate a growing divide when it comes to travel freedom, with Japanese passport holders able to access 165 more destinations around the world than Afghan nationals, for example. Analysis of historical data from the index reveals that this extraordinary global mobility gap is the starkest it has been since the index’s inception in 2006.
The impact of these and other key developments is analysed in depth in the 2020 edition of the Henley Passport Index and Global Mobility Report — a unique publication that offers cutting-edge analysis and commentary from leading scholars and professional experts on the latest trends shaping international and regional mobility patterns today.
Commenting in the report, Dr. Parag Khanna, bestselling author and the Founder and Managing Partner of FutureMap in Singapore, notes: “Migration, as with almost everything else, is a function of supply and demand — and, increasingly, it is accepted that more migration creates more demand, stimulating much needed economic growth. As the world economy heads into a synchronized slowdown, we must view migration as part of the solution, not the problem.”
Khanna points out that with the USChina trade war showing no signs of decelerating, Western investment has shifted out of China towards Southeast Asia, bringing a new wave of foreign talent into ASEAN countries that have encouraged greater migration through streamlined visa policies. Thailand’s strong upward movement in the Henley Passport Index’s rankings over the past year is a clear illustration of this emerging trend; benefitting from mutually reciprocal visa waivers, the country has climbed three spots in the past year and now sits in 65th place, with a visa-free/visa-on-arrival score of 78.
Middle Eastern countries have also made strong gains as part of overall efforts to boost trade and tourism. The UAE and Saudi Arabia each climbed four places, while Oman climbed three. Saudi Arabia is now in 66th place, with citizens able to access 77 destinations around the world without a prior visa, while Oman sits in 64th place, with a visa-free/visa-on-arrival score of 79. Despite these positive regional developments, Dr. Lorraine Charles, Research Associate at the University of Cambridge’s Centre for Business Research, warns that migration and mobility trends in the Middle East are largely driven by conflict, which looks set to continue in 2020. Citing deepening conflicts in Libya, Syria, and Yemen, and with renewed anti-government protests in Egypt, Iraq, and Lebanon, Charles notes that “forced displacement will most likely continue to dominate migration and mobility patterns within the Middle East.”
Brexit, talent migration, and the gap between policy and rhetoric
Following the Conservative government’s landslide victory in the UK late last year, the future of mobility and travel freedom between Britain and the EU remains uncertain. Madeleine Sumption, Director of the Migration Observatory at the University of Oxford, says, “The Conservative government has promised an ‘Australian-style’ points-based system that would be more liberal than current policies towards non-EU citizens, though still much more restrictive than free movement. As with all big migration policy changes, what this will mean for actual levels of mobility, however, remains extremely difficult to predict.” Noting that the looming threat of Brexit has potentially made Britain a less attractive destination for EU citizens, Sumption points out that net EU migration to the UK fell by 59% between 2015 and 2018.
Prof. Simone Bertoli, Professor of Economics at Université Clermont Auvergne (CERDI) in France, says that while countries around the world insist that they are taking steps to attract “the best and the brightest”, a rather different picture is currently emerging: “When it comes to talent migration, a worrying gap between policy and rhetoric has been opening up over the past year. The sluggish improvement of labor market conditions after the 2008 crisis, and the concomitant rise of nativist political parties, is reinforcing the perception of immigration as a threat rather than as an opportunity.”
Citizenship-by-Investment countries retain strong positions
Going into the new year, countries with citizenship-by-investment programs continue to consolidate their positions on the index. Malta sits in 9th place, with access to 183 destinations around the world, while Montenegro holds on to 46th place, with a visa-free/visa-on-arrival score of 124. In the Caribbean, St. Kitts and Nevis and Antigua and Barbuda secure 27th and 30th spot, respectively.
Discussing the increasing popularity of investment migration programs for both wealthy investors and the countries that offer them, Dr. Juerg Steffen, CEO of Henley & Partners, says: “Demand for these programs is accelerating, just as the supply has grown globally. The past year has shown that, increasingly, nations and wealthy individuals see investment migration as more than a competitive advantage. Today, it is viewed as an absolute requirement in a volatile world where competition for capital is fierce, and it’s very clear that we will see more of this in 2020.”
2019 has been a challenging year where our readers’ focus has been on how to better manage and diversify portfolios. This shows in the most read stories of the year, which have a tilt towards alternative investments and benchmarking. Our top 5 is comprised of:
The CERPI Boom in Mexico Should Continue in 2019 | This column by Arturo Hanono talks about a considerably new investment vehicle that allows global companies to co-invest along with the Mexican Pension Funds. It was published in February and took January’s numbers into consideration to present a rosy outlook for the asset class. Uncertainty in the country made both the amount of issues and the money invested to drop considerably this year, however CERPIs did outnumber CKDs, which was the author’s point in the most read piece of 2019.
We Currently Have a Robust M&A Market | This column by Michael Gabelli, from Gabelli Funds, also presented a positive outlook for 2019. It focused on specific deals and potential deals for the year.
Funds Society Presents its 2019 Asset Manager’s Guide NRI | The news about the release of our Asset Manager’s Guide NRI, a comprehensive list of asset management firms providing UCITS investment solutions to investment professionals in the wealth management non resident industry, was a very popular piece. It presents information on almost 60 international asset management firms who do business in the NRI market through their UCITS range of products, and their contacts.
RIA Leaders Are Becoming Younger, Average Age Goes From 52 to 49| A piece about research from TD Ameritrade Institutional which finds the leadership of registered investment advisor firms is passing the torch from the Baby Boomer to Gen X. The report found that the advisory community as a whole is getting younger, reversing a graying trend that had many advisors worried about the sustainability of the industry.
Frontier markets are often attractive to investors as they include countries or economies that are underdeveloped. In this Q&A, Matthews Asia Portfolio Manager Robert Harvey discusses his current views on investing in frontier markets.
What is the current outlook for frontier markets?
It’s important to remember that not all frontier markets are created equal. Some countries have better demographics, better positioning regionally or globally and better political systems, infrastructure and legal framework. A deficiency in any of these areas is a challenge, but opportunities arise when you see positive change. In my view, Asian frontier and smaller emerging markets overall have been out of favor for a while and valuations are now attractive, especially when compared with their growth potential.
When are frontier markets most attractive for investment?
Frontier markets are often attractive to investors as they include countries or economies that are underdeveloped. This means they have the potential to grow, although this potential often is not yet realized. Frontier markets are usually most attractive to invest in when they are most out of favor. Pessimism means you can often buy attractive shares in companies at low prices. When investors become pessimistic, when media reports are largely negative, that is the time to invest in my opinion.
What is the difference between frontier markets and emerging markets?
There is no real difference between the two. At a basic level they are definitions created by benchmark providers. If you compare Sri Lanka (a frontier market) with India (an emerging market), for example, you will see Sri Lanka is much more developed by most economic metrics. For 2018, India had per-capita income of approximately US$2,000, for instance, while Sri Lanka had per-capita income of around US$4,200. Broadly speaking, the definitions are a convenient suggestion or indication of how underdeveloped a country might be.
What is the typical profile of a frontier market investor?
Frontier markets offer huge potential, but it is a complex segment. Investors must have time on their side. Complexity in frontier markets comes from many areas: domestic politics, global commodity prices; domestic economies; foreign exchange movements and domestic business cycles. Their small relative size can also result in a magnified impact on stock prices by changes in investor sentiment. These markets are mostly not suitable for investors who have a shorter time horizon. I think frontier markets are also more suited to investors who are looking for low correlations against developed market indices and who are looking for lower overall volatility. That being said, the complexity of these markets requires a good active manager who understands these complex markets and can discover opportunities for investors.
What are the risks that frontier markets investors should assess before entering a market?
Risks include high oil prices that can materially impact emerging and frontier markets, but the impact differs by country. In the Middle East, high oil prices are a big positive and can help boost both the external accounts and the investment and spending within a country and the region. High oil prices are a negative for oil-importing countries such as Sri Lanka and Pakistan. High oil prices can result in higher import bills, a weaker currency and ultimately higher inflation and interest rates. Therefore, we believe investors should have a long-term time horizon and be prepared to endure volatility. Try not to invest when frontier markets are making news. Just because a market moves up or down, it is not a reason to sell it—only sell if the fundamentals change.
Can you share your investing strategy for frontier markets?
Our approach to emerging and frontier markets is no different than how we look at Asia’s developed markets. We use on-the-ground, bottom-up fundamental analysis to select stocks with a long-term time horizon, mainly focused on the growing consumer demand in these underdeveloped countries. We believe in on-the-ground research and meeting management teams face to face.
Donald J. Trump, the 45th President of the United States of America, was officially impeached on December 18.
He was accused of pressuring Ukraine President Volodymyr Zelensky to investigate Democrat’s Joe Biden and his son, Hunter.
Trump also wanted Zelensky to launch an investigation in which Ukraine, not Russia, would be fingered in interfering in the U.S. 2016 presidential election.
In return, President Trump would approve $400 million in military aid to Ukraine, which the small European country needed at the time.
The allegations of abuse of power by the President were brought forward by a whistleblower.
The impeachment process started on September 24, 2019, and concluded on December 18 with Trump’s impeachment.
Trump will be tried in by the Senate where his own party, the Republicans, are in control. He is unlikely to be removed from office. The voting so far has been on partisan lines. The President is demanding an immediate trial.
Trump is the third President in America’s history to be impeached. The other two before him are Andrew Jonhson in 1968 and Bill Clinton in 1998.
But how will Trump’s impeachment affect the stock market? Trump has on numerous occasions, measured the success of his presidency based on stock market performance.
Trump’s impeachment and the stock market
The stock market has not given attention to Trump’s impeachment. The S&P 500 – a stock market index that monitors the performance of the largest 500 companies listed on U.S. stock exchanges – was up 7 percent between the start of the impeachment process in September and Trump’s censure in December.
The S&P 500 was fluctuating positively as a result of a trade deal that Trump brokered with China.
Trump launched a trade war with China since coming into power. This has affected the stock market for some time. The possibility of an amicable deal is good news for investors.
During the early days of the impeachment process, President Trump warned that impeaching him would crash the stock market.
“If they actually did this the markets would crash. Do you think it was luck that got us to be the best Stock Market and Economy in our history? It wasn’t,” said Trump.
He further warned that his impeachment would leave “everyone poor.”
Clinton is the only U.S. president to be impeached in modern history. His impeachment in the late 1990s did not deter the stock market from climbing high.
In the case of President Richard Nixon who resigned in August 1974 before facing impeachment and removal from office, the stock market tumbled.
There is no yardstick or relevant history to predict how Trump’s impeachment affects the stock market.
However, the current trends show that the stock market might perform well after all. As was the case with Clinton’s impeachment.
For some reason, Trump’s impeachment may have failed to have an impact on the stock market because investors didn’t think it would change anything.
President Trump is still in office and will continue to behave as he has been doing since taking the oath of office on January 20, 2017.
Is it time to turn to safe-haven assets?
Investors turn to proven safe-haven assets in times of political instability. Trump’s impeachment is far from that.
The true impact of Trump’s impeachment on the stock market will be seen in the coming days. But it will unlikely wield any results different from what we have seen so far.
Trump’s presidency is nothing but a roller-coaster. And markets will fluctuate accordingly.
111 North Orange Courtesy photo, taken by Costar. Black Salmon Acquires Office Tower In Downtown Orlando
Black Salmon announced the acquisition of 111 North Orange in Orlando for $67.75 million. The 245,201-square-foot, ‘Class A’ office building is considered one of the most sought-after towers in the city’s central business district.
Set in downtown Orlando, the 21-story building is ideally surrounded by more than 500,000 square feet of walkable, street level retail, as well as new multifamily development, creating a true live-work-play environment. Ninety-four percent leased, notable tenants include Regions Bank, UBS, Geico,and co-working space provider Regus.
According to the Bureau of Labor Statistics, Orlando has led the nation in job growth for the past four years, a testament to its strengthening economy. While the region is often most associated with its robust tourism sector, job growth stemmed primarily from professional and business services, which accounted for more than 20,000 new jobs this year.
Black Salmon’s portfolio includes assets in major markets throughout the U.S., such as the San Francisco Bay Area, Phoenix, and Indianapolis. The firm’s investment strategy continues to focus on acquiring stabilized assets in high grow markets with an educated workforce, robust technology industry, and strong market fundamentals.
“Downtown Orlando has been on our radar since the firm’s inception, and we are so pleased to have identified this rare opportunity to own a landmark office tower in the area,” said Grant Peterson, Vice President of acquisitions with Black Salmon. “As we look to 2020, we aim to continue expanding our footprint with similar deals for our select group of investors.”
The expansion of high-speed rail service Brightline, soon to be Virgin Trains, to Orlando’s international airport is expected to further bolster the city’s already booming economy by facilitating new business growth and adding regional transportation options. Orlando is also home to the University of Central Florida (UCF), the largest university in the nation, and the Central Florida Research Park (CFRP), the fourth largest in the country.
