Steven Dray, senior portfolio manager and chief investment officer, breaks down our perspective on performance and market outlooks as we enter the final quarter of 2019:
Q2 2019 Audiocast
Kevin Callahan, senior portfolio manager, breaks down our perspective on performance and market outlooks as we enter the third quarter of 2019:
5G Rising
At this point, you have likely heard the term “5G” thrown around in similar fashion to AI (artificial intelligence), autonomous driving, and IoT (internet of things). The evolution of fifth-generation (hence, 5G) cellular/mobile networks will provide a host of opportunities for businesses, consumers, public entities, and investors alike in the years ahead as the new mobile communication superhighway will facilitate the faster transmission of increasingly large data volumes. While increased data flow brings with it incremental cybersecurity and personal information sharing challenges, if managed responsibly the benefits of 5G stand to outweigh the risks.
Deficits and Market Churn
As we proceed through the fourth quarter of 2018 we are experiencing one of the most intense periods of equity volatility since this long bull market began in 2009. There are multiple contributing factors at play including geopolitical tensions, expensive stock valuations, rising interest rates, and trade disputes. Regionally, the European Union experiment is starting to crumble with BREXIT scheduled to happen (or maybe not?) on March 29, 2019. The European Central Bank is on the verge of reversing their unprecedented monetary easing policy. Emerging markets are experiencing their worst period of instability since the currency crises of 1997. Chinese growth is decelerating as authorities strive to achieve a consumption-based economy. And in the U.S. economic and political uncertainties abound. As a result, we here at Zevin Asset Management recognize that the outlook for global equity markets has become increasingly risky throughout 2018 and particularly so in the third and fourth quarters of the year.
Automobile Industry & the Electric Vehicle Revolution
The growth of the global automobile industry over the past century has been intrinsically tied to the internal combustion engine. Rapid advances in battery technology represent a sea change for the industry that has fueled the accelerating global rollout of electrified vehicles that will displace demand for conventional vehicles. The electrification of vehicles, both passenger and commercial, is a game changer that will disrupt the staid industry. Traditional manufacturers, suppliers, and distributors will be forced to confront the new electric car reality and the different competitors, economics, and regulations that accompany it. If done right, this important shift can have a significant positive effect on carbon emissions.