Jonathan Hirtle launched his $18 billion firm in the wake of the 1987 market crash. He told us what he's holding for the long haul, and what's different about the current bank crisis.
Jonathan Hirtle founded his firm 45 years ago, and it now manages $18 billion in wealth.Hirtle also discussed how he's investing clients' money and his long-term market views.
"This doesn't feel like '87 to me at all: '87 was technical, it was a trading drop. This is fundamental," he said, meaning that the cause was a combination of excesses in the tech industry and interest rates that have risen significantly. But unlike 2008, he says there's no sign of a threat to the global financial system or the world economy.
Still, he says that global diversification, and diversification across stocks, bonds, and private equity is important for the long term. He prefers stocks to bonds, but says that Treasury Inflation-Protected Securities are attractive right now, especially for tax-exempt clients.Hirtle says that in the years since 1987, investors have emphasized short-term trading to a larger extent and focused less on long-term investing. In the short term, what matters is that the financial system is healthy.
Another is that long-term gains tend to be more gradual. In the 2010s bull market, stocks rose about 400% in a little under 11 years. That's about 15% per year, according to S&P Global. But historically, nominal gains of about 6% — or around 4% after inflation — are more standard.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mt. Gox creditor saga: What lessons has the Bitcoin community learned?The Mt. Gox hack was one of the largest thefts in the history of Bitcoin and cryptocurrency, significantly impacting the broader industry.
Read more »
Will Michael B. Jordan Learn the Lessons of Sylvester Stallone's Paradise Alley?Michael B. Jordan made his directorial debut with Creed III, but his franchise predecessor settled for a stranger, yet still revealing, act of self-presentation. rockmarooned on Sylvester Stallone's Paradise Alley:
Read more »
Video Actor William Shatner reflects on remarkable life, valuable lessons learnedThe actor and author released a new book of essays, “Boldly Go: Reflections on a Life of Awe and Wonder.”
Read more »
6 Lessons Lethal Weapon 5 Can Learn From The Failed TV ShowLethal Weapon 5 has a lot to learn from Fox's short-lived attempt to turn the Lethal Weapon franchise into a family-friendly TV show in 2016.
Read more »
Lockport High School District 205 candidates differ on lessons about race and sex educationWhen it comes to issues of discussing race, sexual education and books in schools, Lockport Township High School District 205 Board candidates differ on how race and sexual education should be addressed and have varying views on what books are appropriate.
Read more »
Expanded Florida law would ban lessons on sexual orientation, gender identity in all gradesThe rule change would ban lessons on sexual orientation and gender identity from grades 4 to 12. The proposal would not require legislative approval and is scheduled for a vote by the state Board of Education next month.
Read more »