Editorial Q3 2019

Dear colleagues,

It’s the question that kids always ask on a trip: “Are we there yet?”
And the answer that parents give is: “We’re not there yet, but we’re getting closer.”

“May you live in interesting times” is said to be an English translation of an ancient curse.
We are certainly living in interesting times right now. Is this the end of a bull market that has been running for more than 10 years? A headline just hit my screen that reads, “Dow Slides 100 points as inverted yield curve stokes recession fears.” What does an inverted yield curve
in the U.S. mean when about $15 trillion of non-U.S. government bonds, or 25% of the market, now trade at negative yields. I never thought I’d see that – I didn’t think it was possible. Add to those disconcerting fundamental indicators a trade war that has more twists and turns than an acrobatic aircraft at the Chicago Air & Water Show. Clearly this market is being driven by more than simply fundamentals. That leaves me with more questions than answers, I’m afraid.

Fortunately, Ron Joelson from Northwestern Mutual was willing to share his experience and perspective with us in this quarter’s The Interview segment. His company manages over $200 billion and invests about $1.6 billion per month, so he is very familiar with the challenges of staying fully invested in these tumultuous markets.

New for this edition is a section called The Commentary. It is a platform where seasoned industry professionals can share their experience and views with our readers. While we take no position on these contributions, we do believe our readers will benefit the insights from people who have been at this a while. We hope you like it and welcome your thoughts and suggestions.

Our goal is to be the go-to read in the insurance asset management business. We construct these issues to have a broad array of timely topics with no overlap – topics that are specifically relevant to the insurance asset management industry. Please share topics that you would like us to cover. We are happy to add others to our electronic distribution, and print subscriptions are available for sale to non-insurance professionals.

We are humbled by the positive response we have received to this point, and we continually strive to get better. We can best do that with the help of your input and suggestions.
Thank you for your continued support.

Best regards,

Stewart