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Resource Calls Provide 2020 Insights, Announce New Program for Dynamic Advisors

November 12, 2020

In case you missed the latest Dynamic Resource Calls (or if you didn’t, they’re worth a repeat!), here’s a summary of the two must-listen webinars Dynamic hosted in October with industry thought leaders. Links are below to access the webinars on demand:

Is It Different This Time?

Apollo Lupescu, PhD, vice president of Dimensional Fund Advisors, joined Dynamic on an Oct. 22 resource call for an insightful conversation, “Is It Different This Time? A Roundtable Discussion of market trends in 2020.”

Though the webinar covered a lot of ground, Lupescu was quick to answer the question at hand with a resounding, “Yes, it is different this time. We’ve never been in a situation like this.”

However, he noted there are different facets of the question and touched on three key themes:

1) The markets are competitive, and there are important signals to watch. For example, an interest rate associated with a particular bond sends a market signal, not an opinion. Lupescu advised to “look at the signal that’s coming from the market in the form of the yield, the interest rates that the company has to pay to borrow money,” adding that “the markets are still functioning well.”

2) There’s a bit of a savings glut because consumers aren’t spending. “They don’t have a lot of things to spend on, unlike a typical economic downturn where people would like to spend money, but they can’t.” Because people have a lot of money, they need to put it into something such as stocks or bonds.

3) We’re seeing a demand side shock and a supply side shock. In a typical economic downturn, there is demand side crisis. Lupescu explained that three groups generate economic activity: consumers (the largest one, about two thirds is based on what we buy); companies buying things; and the government buying things. When consumers aren’t spending as much, factories don’t produce as much, lowering economic production in the country. We have that today, however, is different than the typical economic downturn: supply side shock. That means even if the economy wants to produce, it can’t, because we’re still not back at full capacity. “Look at restaurants, shops, all kinds of businesses that are still operating into some form of pandemic quarantine. What we’re seeing right now is quite unusual.”

Lupescu also shared 23 data points, dating back to 1926 and the past 23 presidential elections. The lesson, he explained, “is that in every single case, when the market went down in an election year, there was something a lot bigger going on in the world, rather than just the election itself…the big lesson is this, politics is a variable, but it is not the variable. It is something that matters to some degree to the market and company performance, but it is a relatively small piece.”

Access the “Is It Different This Time?” resource call on demand.


New Program for Dynamic Advisors Provides Resources for Charitable Giving

If you haven’t already, now is the time to reach out to charitably minded clients on the tax implications of charitable giving and help them achieve their philanthropic goals. On Dynamic’s Oct. 15 resource call, Mark Ricketson, vice president and charitable planning consultant of Fidelity Charitable, delivered an informative presentation, “Year-End Charitable Planning: 2020 trends and strategies for smarter giving.”

On the webinar, Ricketson discussed the far-reaching impact of COVID-19, resulting in philanthropy in action; what’s new in the CARES Act; and donor-advised funds as the most tax advantageous way to give to a charity. He also announced Focus, a new program for Dynamic advisors.

According to Ricketson, the Focus program provides comprehensive resources, a “back office solution” that includes CE education, client material letters and onboarding videos. Ricketson and Fidelity Charitable colleague Brandon Collins, CAP® will serve as first points of contact on “anything charitable” such as private foundations, charitable remainder trusts and charitable lead trust tax law changes.

“Jim (Cannon) and team were the first to take advantage of what Fidelity Charitable is offering,” said Ricketson. “Look for more information regarding the Focus resources at the end of the year and beginning of next. There are going to be a lot of great resources there for you to make incorporating charitable planning and strategic charitable giving into your practice very easy.”

Access the “Year-End Charitable Planning” resource call on demand.