As investors know, transitions are an inevitable—and necessary—part of financial markets, economies, and geopolitics. But rarely in recent history have investors been forced to grapple with so many potentially major transitions at once.
The U.S. Federal Reserve’s decision to lower interest rates in September signified a shift in monetary policy—a move that was, in turn, driven by a softening labor market and slower inflation. Many developed economies around the world, including the U.S., are holding elections in 2024, and questions about the trajectory of globalization, immigration, and national security are significant undercurrents in these closely watched campaigns. In the corporate arena, companies continue to explore artificial intelligence’s potential to transform their operations and workforces.
Transitions create uncertainty, and uncertainty fuels volatility in financial markets. Navigating this volatility is one of the greatest challenges facing investors, business leaders, and families today. At William Blair, we believe that successfully managing volatility requires a relentless focus on our clients’ long-term goals, deep expertise across complex global markets, and the agility to capitalize on emerging opportunities across asset classes and sectors.
In this edition of Client Focus, William Blair’s global business heads share insights about how they are guiding their clients through various types of transitions and uncertainty. Macro Analyst Richard de Chazal examines how market indexes such as the CBOE Volatility Index (VIX) and other indicators can help investors identify market trends. Our Investment Management team discusses how it works with pension funds and other institutional investors with complex liabilities and constraints to build resilient portfolios across market cycles.
Families with substantial wealth face their own types of transitions. Selling a business, transferring wealth to the next generation, or launching a new philanthropic endeavor are all major inflection points on a family’s wealth journey. Our Private Wealth Management team discusses how our services for family offices and corporate executives empower high-net-worth families to manage these changes and strengthen their legacies. We also share insights from a recent "Unlocking Corporate Philanthropy" panel we hosted, where corporate philanthropy leaders described the successful strategies behind their companies' philanthropic efforts and how nonprofits can best engage with corporations.
Despite the many transitions facing financial markets, we are cautiously optimistic about the investment and economic outlook for the remainder of this year and into 2025. Regardless of the direction or velocity of change, we remain steadfastly focused on using our firm’s global expertise and resources to help you achieve your objectives.
Thank you for placing your trust in William Blair. Please do not hesitate to contact me directly at CEOPerspective@williamblair.com with any questions, comments, or ideas about how we can better serve you.
Sincerely,
Brent Gledhill
President and CEO