As we move into 2017, all of us at Prime Advisors, Inc. want to thank our clients for their continued business. Prime has recently attained a record level of assets under management and we want to highlight our continued outperformance of our investment benchmarks across the board. Thanks to our investment process and client focused culture, Prime’s investment performance has now outperformed our benchmarks for 8 consecutive years in a row. It is important to all of us that we deliver to our clients, and that our investment results exceed client expectations. Our motto is, “Our client’s success is our success”, and we look to partner with all of our clients to deliver on this every single day.
Regardless of political leanings, America has a new President. It is time to remember that those of us that are citizens of the United States, are all Americans. We want the best outcomes for all Americans. This election served as a valuable reminder that in America those that are governed are the ones that ultimately determine who governs.
A great test for those who govern over the coming years will be determining how to effectively manage an ever more globalized world in an era of increasing nationalism in many developed countries across the globe – including the United States. Any significant decisions or policy changes on how to balance globalization versus nationalism will have a direct and potentially significant impact on investment results across asset class sectors.
While “world peace” is a nice holiday wish, the fact is that in many places across the globe the world is a dangerous place. There are currently areas and people that want to both systematically and indiscriminately kill Americans. This creates the potential for rising global tensions and significant risks for investments across the globe.
Most Americans would agree that our tax code is too complicated in the United States. The task of adhering to our tax code is cumbersome. Many tax code rules do not make sense at the individual or the corporate level, leading to inefficient outcomes. For the first time in over a decade my impression is that there are going to be real changes in U.S. tax policy. Simplification of the tax code will hopefully wring out the inefficiency that is inherent in such a complicated mess of a tax code that has developed over many years. The impact of potential changes to the tax code is that there will be a real change in the value proposition of both tax advantaged and taxable asset investments in the United States.
Three major policy issues for the governing bodies in America over the coming years will be: effectively managing globalization, dealing with rising global tensions and changing or simplifying the tax code. All of the policy decisions on these items will have a direct impact on investment results going forward. Attempting to predict what might specifically happen is fruitless. However, being knowledgeable and equipped to react quickly and decisively to material events is an important prerequisite for investment success in the comings years.
If I had one suggestion for those that govern, it would be to set a better example for Americans by making sure that all new policy applies to the governing class as well as to the governed. I suggest starting with the healthcare system, going forward, let’s make sure the governing class fall under the same healthcare plan options as all Americans that they govern. No exceptions. This would go a long way towards creating a healthcare system that is fair to all Americans.