Insights from SWS Partners

The consensus heading into 2019 was that the Federal Reserve’s Open Market Committee would raise the federal funds rate three times this year. Instead, the benchmark lending rate was cut last month for the first time since 2008. Concerns over a global slowdown, trade wars, and yield curve inversion have given the Fed air cover to be “proactive.”

Reading between the lines, however, we find it hard to determine if the rate hike is consistent with the Fed’s mandate of price stability and maximum employment. 

In Part 1 of our Venture Capital Investing for Private Investors series, we discussed how technology has enabled more investors to harness the growth potential of these companies. Here, we will share some macroeconomic considerations specific to this asset class.

Consistent with our mantra of delivering contemporary solutions to sophisticated investors, SWS Partners is continuously developing expanded opportunities for our clients. To do so, we have prioritized staying abreast of changing trends and demographics. The confluence of these factors has led us to spending more time and attention on venture capital investing. We simply define venture capital investing as investments in high growth, private companies, or those that are not listed on an exchange, such as the New York Stock Exchange or NASDAQ. Peloton, SoFi, Instacart, SpaceX, and Airbnb are common examples that fit this definition.