State of the Markets Macro Economic Check-In

Economic strain across many factors has continued to create challenges for Catholic institutions who seek to grow their endowments so that they may sustain their vital ministries. This webinar was a wide-ranging discussion that focused on the macro and micro environment and outlook for the new year. This webinar featured Jack Brennan, CIS Founding Chair & Chairman Emeritus, The Vanguard Group, and Joseph Davis, Vanguard’s global chief economist and global head of the Investment Strategy Group, as they assessed the current state of the capital markets, highlight investment challenges and risks, and share best practice ideas on institutional investment themes. Joe also touched on his new book titled “Megatrends”, which demonstrates how AI, debt, demographics and deglobalization may impact the economy and markets in the coming decade. The info session concluded with questions from the audience.

00:00 – Tom Lanctot, CIS CEO, Welcome and opening prayer

03:02 – Jack Brennan, CIS Founding Chair, Introductions and starting the conversation

08:18 – How the forecasts were wrong about the economy and what the implications are

11:28 – The appeal of cash as an asset class

15:43 – Are recessions healthy?

17:38 – The rising rate environment

19:47 – The past and future of the 60/40 portfolio

23:46 – Inflation in the next 5 years

26:53 – Global portfolios: will we see globalization or deglobalization?

30:21 – Risk management and geopolitics

32:45 – The advent of alternative investments

36:13 – Megatrends and our financial future

46:50 – Q: Will there be positive or negative correlations between stocks and bonds in the future?

48:40 – Q: From an endowment point of view with an infinite time horizon, why not be in stocks entirely and avoid bonds in a portfolio?

51:35 – Q: Increases in prices seem to be holding despite decreasing inflation and wages; what is the long-term implication as prices seem to outpace wage increases?

54:22 – Thank you and closing