Lumen Global Investments
Asset allocation / Innovations / Lumen Global Value Compass / Wealth Management Trends

Wealth Management: Innovations and Trends

The money management industry is undergoing a seismic shift. The old active money management model picking stocks, bonds, or star managers no longer provides a reliable source of return. Active and detailed global asset allocation that is highly customized is becoming the most effective investment style for outstanding results.

Wealth managers, family offices, and other institutional investors will be empowered by digital investment solutions that leverage essential data, technology, and financial innovations to perform crucial investment functions at a fraction of the cost of an entire investment team. Moreover, as wealth changes hands, investment advisors that incorporate digital tools can better capture this new generation of wealthy clients.

Asset allocation / Cost of capital / Dispersion / Investments / Lumen Global Value Compass / Market Outlook / Research / Residual Income Model / Valuation

Regional, Emerging, and Major Markets Investment Outlook – Value vs. Risk

Using the Lumen Global Value Compass calculated market-implied expected returns and stress-testing with the Residual Income Model, we discovered lots of value dispersion regionally and within the emerging world. Intrinsic risk is more skewed towards EM than DM.

Research

The Mighty Dollar

“The US Dollar is our currency, but it’s your problem” – John Connally, Secretary of the Treasury of President R. Nixon, G10 Meeting, Rome, Italy 1971

To answer the question whether the U.S. Dollar is at risk of a crash, we need to distinguish between the Role of the Dollar and the Value of the Dollar – two very different analyses.

Research / Valuation

Rallies, Bubbles, and Value

Despite a pandemic, economic misery, and a dangerously contested election the likes of which the United States has never experienced, the equity market continues its upward march and breaking new records in the process. Indeed, many pundits point out to the enormous rally of the mega caps as evidence of a bubble. We disagree, and if anything, we believe the market has behaved very rationally.

Asset allocation / Market Outlook / Research

Lumen Global Investments – Investment Outlook Fall 2020

Global markets are at an unusually sharp inflection point reflecting an equally unusual convergence of uncertain geopolitical and public health outcomes markedly affecting economic activity and policy stances across advanced and emerging economies alike.

Read on to see why we believe an aggressive stance is justified.