White Papers & Educational Publications

White Papers

Investment Perspective: A Return to Irrational Exuberance?

Based on the S&P surpassing the 5,000 milestone and reaching all-time highs, inflation subsiding, and the U.S. economy appearing on the path to a soft landing, there are reasons to be optimistic about the market outlook.  However, investor sentiment appears to be stretched and a shakeout of speculative pockets could occur.  We also note that the potential risks posed by geopolitical instability and stress in commercial real estate are considerable and must be continually monitored.  The recent rally could be an opportunity to trim equity exposure on strength in portfolios that are approaching the high end of their policy ranges.

Read More

White Papers

Investment Perspective: The Outlook for Monetary Policy

In this investment perspective, we evaluate the current environment through the lens of the Fed’s dual mandate and attempt to reconcile the start date of when the easing cycle may begin.

Read More

White Papers

Investment Perspective: Unwrapping the Market Dynamics Behind a “Santa Claus Rally”

The recent market rally has been driven by a confluence of factors; primarily declining interest rates, expected rate cuts by the Fed, improved corporate earnings, and short-covering of highly shorted, rate-sensitive equities.  This positive momentum has historically improved the odds of a Santa Claus Rally in the year’s final market sessions that continues into early January. 

However, January Opex has the potential to signal a vulnerability window as these seasonal factors dissipate.  It is also possible recent Fed rhetoric alluding to conquering inflation could prove to be premature as stubborn structural inflation persists across global economies.  A strong Santa Claus Rally into January may prove to be an opportune time for investors to trim gains and rebalance portfolios to ensure proper positioning in the event of an eventual rise in volatility and market weakness. 

Read More

White Papers

Unraveling OCIO Solutions: A Guide for Investors

The OCIO industry has surged in popularity in recent years, attracting diverse investors amidst market complexities.  The challenging investment landscape of the last half decade has amplified the need for a steady hand and trusted guide at the helm. 

In addition to more than three decades of experience and specialized expertise, Prime Buchholz offers an optimum blend of flexible service models, a deep understanding of the non-profit world, an aligned, independent ownership structure, and unique insights gained through our proprietary analytics platform.

Read More

White Papers

Investment Perspective: Commercial Real Estate – Where Do We Go From Here?

Stress & Distress A steady stream of headlines highlighting distressed CRE assets and landlords paint a grim outlook for the asset class. Stress and distress emerged in the office space sector, as post-pandemic work-from-home trends have altered the demand for office space, resulting in climbing vacancy rates. This has dislocated the sector and initiated a… Read more »

Read More

White Papers

Emerging Markets Health Check

Emerging markets (“EM”) are often thought to be vulnerable to tightening cycles in the developed world.  This belief is not without merit, as evidenced by the “Taper Tantrum” of 2013. At first glance, it would appear that this viewpoint is warranted, based on the performance of EM during the latest market downturn.  EM equities have fallen since the Fed began raising rates earlier in 2022.  Additionally, EM headlines in recent months have focused on the rising number of countries in the developing world approaching default and the roughly quarter of a trillion dollars in distressed EM debt. Headlines, however, can be deceiving. 

Read More

White Papers

Markets Fluctuate as the Fed Pivots

Volatility Rings in the New Year It was a tumultuous first month of the year, as rising inflation and a shift in the Fed’s monetary policy stance caused extreme volatility across most markets.  In the wake of strong market performance to end 2021—predominantly attributable to the strength of mega cap stocks—losses within equities have been… Read more »

Read More

White Papers

Prime Buchholz ESG & DEI Surveys: Understanding Integration Across Recommended Managers

Since one of our first clients sought to stand against Apartheid and divest from South Africa in 1988, Prime Buchholz has been helping clients reflect their missions and values through their investment portfolios.  With a client base rooted in philanthropy, we have witnessed interest in mission-aligned investing build exponentially, particularly in the last decade.

Read More

White Papers

The Inflation Debate Continues

Inflation has been a topic of much speculation since the outset of the COVID-19 pandemic.  In our April Investment Perspective, The Inflation Debate, we explored some of the factors behind rising inflation expectations, including the historic level of stimulus that has been infused into the system worldwide. In the following report, we examine some of… Read more »

Read More

White Papers

The Biden Tax Plan: Key Takeaways for Today’s Investors

Introduction In his first 100 days in office, President Biden has proposed more than $6 trillion in federal spending. This includes the recently passed $1.9 trillion COVID-19 relief package, a $2.3 trillion infrastructure spending plan, and  $1.8 trillion for the American Family Plan targeting family and education programs.  The Biden administration has proposed a series… Read more »

Read More

White Papers

The Inflation Debate

Introduction With travel restricted and economies closing, inflation expectations dropped precipitously at the outset of the COVID-19 crisis.  However, massive stimulus efforts and the reopening of economies in recent months has caused inflation expectations to rise. The chart below shows inflation expectations derived from the U.S. Treasury Inflation Protected Securities real yield information for the… Read more »

Read More

White Papers

The Acceleration of the Clean Energy Revolution

When the Great Financial Crisis shook the markets in 2008, it sent the energy sector into freefall and brought the positive momentum of the burgeoning renewable energy industry to a screeching halt.  In contrast, the COVID-19 crisis appears to have accelerated the shift toward renewable sources of energy. As the world went into lockdown in… Read more »

Read More

White Papers

Chaotic Start to the New Year

The start of a new year is always exciting; full of wonder and new beginnings.  That is, of course, unless the first few days feel like a continuation of the previous year… and the previous year was 2020. In the midst of record rates of COVID-19 infections and deaths, the first week of 2021 was… Read more »

Read More

White Papers

NASDAQ: A Historical Perspective

The NASDAQ 100 Index reached all-time highs this week.  While the Index briefly entered a bear market in March, it regained its losses by early June and continued its upward climb.  Year-to-date through July 31, 2020, the NASDAQ outpaced the S&P 500 by roughly 2,300 bps, helping propel the NASDAQ’s strong performance over the past… Read more »

Read More

White Papers

The Diversity Dynamic

Introduction Even as we have witnessed momentum among our clients to identify and invest with diverse managers, the asset management industry has been slow to address a history of gender and racial homogeneity. Recent events have put a spotlight on a number of industries where the immense benefits of a diversity of perspective and experience… Read more »

Read More

White Papers

Markets Post Sharp Rally Off Pandemic Lows

Over the past two-plus months, equity markets have rallied sharply, with vast stimulus and optimism surrounding the reopening of the economy as the main drivers.  This rebound in equity prices has coincided with ongoing concerns about the health of the global economy. On June 8th, the S&P 500―at least temporarily―returned to positive territory for calendar… Read more »

Read More

White Papers

Climate Change and the Institutional Investor

Awareness of sustainable investing among institutional investors and their constituents has steadily increased over the last decade.  However, recent events have intensified conversations among investment committees, staff, donors, trustees, and other stakeholders.  Climate-related headlines, the mobilization of climate activists and environmentalists, and weakness in traditional energy markets drive much of the noise around the topic…. Read more »

Read More

White Papers

Fiscal and Monetary Policy Align as Stimulus Sparks Markets

March 27, 2020 Market activity from Tuesday to Thursday this week, represented the strongest three-day U.S. equity rally since 1931.  Also, there were some signs of improved liquidity in the fixed income markets. Optimism rose after the Senate passed a massive spending program designed to combat the devastating economic impact of the coronavirus. With this… Read more »

Read More

White Papers

Money Market Funds: Kings and Paupers

March 24, 2020 When market dislocations occur, the notion that “cash is king” is a popular saying by market participants. Unfortunately, how that cash is invested dictates whether cash is a king or a pauper. Prime money market funds (MMFs) invest in a wide array of securities such as commercial paper issued by corporations, bank… Read more »

Read More

White Papers

Investment Perspective: As Coronavirus Spreads, Wash Your Hands and Prepare for More Volatility

Weakness during the latter weeks of February continued into the first week of March.  Fears over COVID-19 (also known as coronavirus) continued to rise as more cases were reported globally.  Investors, faced with a high level of uncertainty, sought safety.  This continued to have a profound impact on capital markets, which saw a selloff in… Read more »

Read More

White Papers

Investment Perspective: Markets React to Coronavirus Outbreak

As the coronavirus outbreak continued to spread far beyond Chinese borders this week, financial markets reacted in kind, with frightened investors repricing global growth expectations and exiting positions, causing stocks to plummet. With the first confirmed case of coronavirus reported in South America on February 26th, the coronavirus outbreak had spread to six of the… Read more »

Read More