September 25, 2017

Wealth Management

Investing advice: How are you advising clients to invest in 2013?

Florida wealth managers give advice in this special report.

Jack Kuhn
Senior Vice President,
Managing Director for Florida West Coast
BMO Private Bank, Naples

“We believe inflation is inevitably coming, and it will decrease the value of fixed-income holdings.”
~ Jack Kuhn

While the odds are against a major bond market collapse this year, Jack Kuhn advises his clients to temper their expectations and consider moving away from fixed income. “We believe inflation is inevitably coming, and it will decrease the value of fixed-income holdings.” If clients insist on staying in bonds, he prefers they move into convertible bonds that can be turned into equities.

The retreat out of fixed income doesn’t need to be overnight, he says. It could happen over 18 months to two years. But he believes those who act now, ahead of the curve, will find attractive alternatives. Many clients already have begun to shorten the duration of the bonds in their portfolios, he says.

On the stock side, Kuhn advises reducing international stock exposure in favor of large domestic stocks: “Where the currency is trading in premium to the dollar, an international stock may not be as attractive an investment. Even if the stock moves, if the currency moves against us, you’re back at same place.”

He believes the S&P 500 is near full valuation, which makes good stock picks more challenging. He’s advising clients to hold onto their equities but says they will need to be monitored and managed carefully throughout 2013 to determine whether to continue to hold or sell.

Kuhn also recommends diversifying into other income-producing investments such as preferred stock, REITs and master limited partnerships. For investors interested in buying gold, Kuhn recommends gold-mining stocks.

Tags: Banking & Finance, Wealth Management

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Florida Business News

  • Breaking News: Nova Southeastern University calls $200 million commitment from Patel Family 'transformational'

    Today, Nova Southeastern University (NSU) announces the largest philanthropic gift in its history from Tampa-area cardiologist Dr. Kiran C. Patel and his wife, pediatrician Dr. Pallavi Patel. The commitment from the Patel Family Foundation includes a $50 million gift and an additional $150 million for real estate and facilities. The money will be used to expand the university's programs in osteopathic medicine and health care sciences, and also to develop a new 27-acre campus for NSU in Clearwater, Fla. The Patels are renowned in Florida for their philanthropy, community service and entrepreneurship.

    “This gift and additional investment will enrich NSU’s ability to educate highly-qualified physicians and health care professionals who understand how the medical disciplines can and must work together. These future leaders will represent the cultural diversity of our region, our nation and our world so that they can better serve their patients and communities,” said NSU President Dr. George Hanbury.

    Their $50 million gift, one of the seven-largest to any Florida university in history, catapults NSU to more than 84% of its goal to raise $250 million by 2020 for its Realizing Potential philanthropic campaign.

    Read more at the news release, here.

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