Richard Saperstein, Barron’s sixth-ranked adviser nationwide, sees many risks to stocks, from a possible intensification of Covid-19 to disappointing earnings in 2021. But that hasn’t stopped him from crafting portfolios dominated by equities – albeit chosen selectively and with a U.S. heavy growth tilt. “The multiple on equities will be higher when you basically have a zero-interest-rate environment,” says Saperstein, founder and chief investment officer at New York-based Treasury Partners, which manages $9 billion of client assets.
Speaking with Barron’s Advisor, the 38-year Wall Street veteran explains how he’s positioning portfolios for “the fourth industrial revolution,” and why he has “minuscule” exposure to international stocks. Saperstein also explains how the collapse of Bear Stearns led to a major business decision.
Below, some of the best analysis and insight from WSJ writers and columnists, the Dow Jones Newswires team and occasionally beyond, on investing, the wealth-management business and more.
Eli Lilly Studies Experimental Covid-19 Drug in Nursing Homes: Late-stage trial explores whether antibody drug can help reduce infections in facilities with a diagnosed coronavirus case.
PLANNING & INVESTING
The World Has Too Many Jet Engines: Grounded airline fleets with limited maintenance needs could depress engine makers’ revenues for longer than investors expect.
From Dow Jones Newswires
Around 51% of the companies comprising the pan-European Stoxx600 index have already reported their earnings for the second quarter, which show a “major impact” on corporate profitability, says JPMorgan. Revenue and earnings per share growth are down by 27% and 23% relative to the same period a year ago respectively, though they are beating very subdued earnings estimates on average, says the bank. (email@example.com; @lorena_rbal)
While the auto sector was hit particularly hard by lockdowns, sales and production seem to be recovering, Capital Economics’s Gabriella Dickens says. According to Capital Economics’s calculations, the collapse was broad-based with sales in both advanced and emerging markets down more than 50% at their trough compared with February. In the near term, the recovery of production and sales bodes well for economies which rely heavily on vehicle production like Germany, Japan and the Czech Republic. “Economies specializing in car production are likely to fare better than those which depend on tourism and consumer services,” Dickens says. However, Capital Economics forecasts the recovery will run out of steam and car sales will remain below pre-virus levels for a long time. (firstname.lastname@example.org)
BUSINESS & PRACTICE
Refiners Retrench as Demand For Gasoline, Jet Fuel Shrivels: U.S. fuel makers ran below capacity in the second quarter in a preview of the challenges they are likely to face as the world transitions away from fossil fuels.
Eni’s Divisional Restructuring Paves Way for Energy Transition — ESG Insight: As a part of Eni’s divisional restructuring, the company appointed Francesco Gattei as its new chief financial officer, replacing Massimo Mondazzi who will head a newly founded energy-evolution unit. The move sends positive governance and environmental signals to investors as it materializes Eni’s 2050 clean-energy evolution plan. The Italian energy company’s structural changes divide Eni into two business groups: natural resources, focused on the oil-and-gas business, and energy evolution, driven by renewable energy and biomethane projects. The new structure reflects Eni’s pivot toward the energy transition, according to Chief Executive Claudio Descalzi. The coronavirus pandemic and the low oil-price outlook weren’t deemed to affect Eni’s transition from one of Europe’s largest integrated oil majors into a renewables-focused company, executives said in an April earnings call.
Remote Work Isn’t Going Away. So Let’s Deal With the Obstacles: Workers need to think of working from home indefinitely as a new career and adjust accordingly.
TRAVEL & LIFESTYLE
Byways of La Serenissima: The Venice You (Probably) Don’t Know: While the pandemic may have put your trip to Venice on hold, now is the perfect time to discover some of its more obscure—and rewarding—treasures online.
The Wealth Adviser Briefing covers topics of interest to wealth managers, financial planners and other advisers. The content is curated by the Dow Jones Newswires team using articles from the Newswires, Barron’s, MarketWatch and The Wall Street Journal. The briefing is delivered to subscribers by email each workday morning at 6:30 a.m. ET. You can sign up here for email delivery.
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