Flash Market Update:
Global stock markets have soured recently, with volatility spiking to five-year highs and the S&P 500 closing today below 1900. The main drivers for this recent malaise are concerns regarding China’s economy and its recent currency devaluation; as well as the US Federal Reserve’s timing regarding a possible interest rate hike.
While China’s yuan devaluation generated more speculation regarding rationale, the US Federal Reserve’s decision to hold interest rates steady seemed a simple call. In light of domestic data that augers against raising rates, China’s slowdown-induced devaluation, rock-bottom commodity and energy prices, and a strengthening dollar; a dovish stance was the clear favorite. Still, the Fed desperately wants to goose rates and reload its proverbial policy gun in case global weakness infects the US economy.
Despite all this noise, and consistent with our August blog update, from a longer term perspective spikes in volatility associated with specific events (like Fed meetings) within economic upturns have consistently been good buying opportunities in the fullness of time. As valuations fall, value is created.
Special “Meet the Managers” Event: Ours To Own – Wednesday, October 14th, 4:30pm to 6:30pm at Mateo
Please save the date for a special “Meet the Managers” on Wednesday, October 14th at Mateo Restaurant at 7pm. BSW is delighted to introduce Ours To Own, a community investment note program syndicated by the Calvert Foundation. Ours To Own notes enable BSW clients to invest directly in the businesses and organizations that strengthen, build, and enhance the Denver-Boulder region.
Here’s how it works: Ours To Own community investment notes are structured similar to bonds or CDs. They can be purchased in $1,000 increments, held in Schwab accounts, pay interest comparable with US Treasuries, with principal returned upon maturity. Ours To Own investor capital is then deployed by organizations like the Colorado Enterprise Fund, the Urban Land Conservancy, and the Community Reinvestment Fund USA into a variety of projects, such as small business loans, affordable housing development, and job creation efforts. Since launching earlier in 2015, more than $5 million of capital has been raised, with $13 million deployed in Boulder-Denver, and an additional $3.5 million of projects in the pipeline. Boulder-Denver Ours To Own notes have already driven investment in 178 businesses and created 2,700 jobs!
Ours To Own notes are low-risk, high-impact, locally-focused investments and BSW is proud to partner with Calvert Foundation to make them available to our clients. Please RSVP to firstname.lastname@example.org to join us on Wednesday, October 14th from4:30pm to 6:30pm at Mateo Boulder to learn more about Ours To Own, success stories so far, and how your investment can help build a more vibrant and resilient Boulder-Denver! For more info on Ours To Own and its successes thus far visit: http://www.ourstoown.org/denver/ and http://www.calvertfoundation.org/blog/553-oto-denver-tour for success stories.
Thanks for reading,
David Wolf, Chief Investment Officer