Vanguard will offer Private Equity Investments

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Vanguard turns to what many view as the ‘dark side’ of investing, the world of complex, exclusive, expensive private equity investments

Vanguard Group plans to offer a private equity investments which will be managed by an outside firm called HarbourVest Partners. Initially, the private equity investment will be available only to institutions such as endowments and nonprofit foundations. But, Vanguard intends to move quickly beyond institutional investors.

Over time and as regulations change, Vanguard hopes to offer these private equity strategies to its individual, non-qualified retail investors.

Typically, private equity firms charge fees that are 2% of assets a year in management fees, plus 15% to 20% or higher of total returns in annual performance fees. Generally, money is locked up for years with little liquidity. This is why the U.S. Securities and Exchange Commission has long kept smaller, non qualified investors out of them.

In a statement, Vanguard chief executive Tim Buckley said, “Private equity will complement our leading index and actively managed funds, as we seek to broaden access to this asset class and improve client outcomes. While this strategy will be initially available to institutional advised clients, we aim to expand access to investors in additional channels over time. For individual investors in particular, this partnership will present an incredible opportunity — access and terms they could not get on their own.”

Contrasting Viewpoint

Eric Walters, founder of Silvercrest Wealth Planning, believes Vanguard’s move is “fraught with risks.” He added, “I think it could work if they are able to access top-quartile private equity managers, most of which are closed to new subscriptions”. Additionally, he added, “Managers below the top quartile often don’t do any better than public equities and often do worse. When you add the high fees and long holding periods, accessing lower-tier managers would be a bad deal for Vanguard clients.”

About Vanguard

Vanguard is one of the world’s largest investment management companies. As of December 31, 2019, Vanguard managed $6.2 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers 424 funds to its more than 30 million investors worldwide. For more information, visit vanguard.com.

About HarbourVest

HarbourVest is an independent, global private markets investment specialist with over 35 years of experience and more than $68 billion in assets under management, as of December 31, 2019.

References:

  1. https://www.forbes.com/sites/antoinegara/2020/02/05/vanguard-pushes-into-private-equity-by-accessing-dealmakers-like-stephen-schwarzman-robert-smith-and-orlando-bravo/#3431f0bf2760
  2. https://www.harbourvest.com/news/vanguard-and-harbourvest-announce-private-equity-partnership
  3. https://www.inquirer.com/business/vanguard-harbourvest-mortimer-tim-buckley-private-equity-20200206.html
  4. https://www.investmentnews.com/vanguard-puts-private-equity-investments-on-the-menu-187888

Asymptomatic People Should Wear Face Masks

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Updated: April 4, 2:53 p.m.

CDC: Use Face Coverings in Public

As more studies show that people without symptoms of COVID-19 are spreading the virus, the CDC is advising that people use cloth masks or face coverings in public.

Scientists now know that a portion of people  with the coronavirus may lack symptoms – possibly 25% or higher. And others who are pre-symptomatic can transmit the virus before they show signs of COVID-19.

“In light of this new evidence, the CDC recommends wearing cloth face coverings,” U.S. Surgeon General Jerome Adams, MD, said, including in grocery stores and pharmacies. “The CDC is always looking at the data and evolving the recommendations, and new ones will come as the evidence dictates.”

The guideline discourages people from using medical-grade or surgical-grade masks, such as N95 masks, and instead, leave those for medical professionals. People can purchase basic cloth or fabric masks online or make them at home.

If people choose to wear a face covering, they should wash their hands first, Adams said. They should not touch their faces while wearing a mask, and carefully remove the mask after use and wash their hands.

“This is all about you protecting me and me protecting you,” Adams said.

The new precaution doesn’t replace CDC guidance on social distancing, including staying at home as much as possible. That includes staying six feet away from others, not shaking hands, and washing hands with soap and water for 20 seconds throughout the day.

Asymptomatic spread of COVID-19

“It’s good to think about wearing a mask as protecting your community and asking your community to do the same for you.” Jeremy Howard

However, the idea of universal face mask use in the U.S. has been gaining support with the growing belief by health experts that many people who have no idea they are infected are spreading the virus because they either have no symptoms or have not begun to experience symptoms.

A study by researchers in Singapore estimated that around 10% of new coronavirus infections may be spread by people who carry the virus but have not displayed any symptoms such as fever, cough, difficulty breathing or sore throat.

And, according to Jeremy Howard, a Melbourne-raised research scientist at the University of San Francisco who has become one of America’s leading champion of universal mask-wearing, stated that, “The primary transmission [of coronavirus] is now known to be droplet-based, and we now know that that transmission largely occurs in the first seven days after infection, when people are largely asymptomatic. So that means that if you’re highly infectious, you probably won’t know it. So we should all assume that we are potentially lethal to people around us. The way we are potentially lethal to people around us is when we speak: that’s when these micro droplets get ejected up to six feet.”

In response, the CDC has changed how it defined the risks of infection, saying essentially that anyone may be a carrier, whether they have COVID-19 symptoms or not. But neither it nor the World Health Organization changed their recommendations that everyone did not have to wear masks.

CDC reconsiders guidance to wear masks 

There is a growing number of Americans and vocal proponents of wearing face masks believe that wearing a mask reduces how many times they touch their eyes, nose and mouth, “but there aren’t any data to support that that’s a useful intervention,” Dr. Schaffner says.

There has been a fair amount of person-to-person coronavirus spread by people not showing symptoms, the CDC will look at whether having more Americans wear masks will prevent transmission of COVID-19.

Nevertheless, staying at home, “social distancing” and washing your hands remain the most important things people can do to help flatten the curve and mitigate the spread of the coronavirus.

References:

  1. https://time.com/5794729/coronavirus-face-masks/
  2. https://www.foxbusiness.com/technology/coronavirus-carrier-covid-asymptomatic-pandemic
  3. https://www.theguardian.com/world/2020/apr/02/face-masks-coronavirus-covid-19-public
  4. https://www.bbc.com/news/world-us-canada-52148534
  5. https://www.bbc.com/news/science-environment-52126735
  6. https://thehill.com/changing-america/well-being/prevention-cures/490579-surgeon-general-asks-cdc-to-review-guidance-on

Economy and Markets will Recover

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“There are ‘tremendous opportunities’ in markets.”  Larry Fink

To build wealth, it is advised that investors should take a long-term view of markets; and that they should take a long-term view in the way they manage their personal finances and investment portfolios.  It is certain that the world will get through; and, the economy and markets will recover once the COVID-19 crisis has abated.

For investors who keep their focus on the long-term horizon, “there are tremendous opportunities to be had in today’s stock markets”, according to Blackrock’s Chairman and CEO Larry Fink. For many of Blackrock’s clients, “the recent sell-off created an attractive opportunity to rebalance into equities,” Fink said.

Take banks as an example, “the damage has already been done” to the industry according to most financial professionals and traders.  Yet, the banks are in better condition financially than they were during the 2007-2009 financial crisis.  Once the virus spread stalls and the economy returns to normal operation, the Fed will still be supporting the banking system.

Positive sign for comeback

“Don’t watch their lips, instead watch their feet.”

Extraordinary monetary stimulus measures by the Federal Reserve and fiscal stimulus measures by Congress and the White House have put a proverbial floor under the market in late March.  As a result, many C-suite executives are buying up their own company’s stocks at a record pace, according to InsiderSource.

“Insiders have a 35+ year track record of buying on the type of extreme weakness experienced in Q1′20,” InsiderScore director of research Ben Silverman said in a note. “A dramatic increase in insider buying volume combined with dampened levels of insider selling has resulted in the generation of industry buy inflections – our strongest, quantitative macro signal – for the entire market.”

In his 2010 newsletter to Berkshire-Hathaway shareholders, Warren Buffett wrote: “When it’s raining gold, reach for a bucket, not a thimble.”  Based on his vast and highly successful investing experience, he states that in period like the present, “Big opportunities come infrequently”.

  1. https://www.cnbc.com/2020/03/30/larry-fink-says-economy-will-recover-from-coronavirus.html?recirc=taboolainternal
  2. https://www.cnbc.com/2020/03/30/coronavirus-stock-market-jpmorgan-top-bank-stock-pick-for-trader.html?__twitter_impression=true&recirc=taboolainternal
  3. https://www.cnbc.com/2020/03/26/executives-are-buying-stock-in-droves-giving-a-strong-signal-that-the-comeback-is-for-real.html?recirc=taboolainternal
  4. https://www.cnbc.com/id/35616702

Dr. Fauci sees ‘Glimmers’

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US health official Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Disease, sees ‘glimmers’ that social distancing is working in the U.S.

“We hope and I believe it will happen that we may start seeing a turnaround, but we haven’t seen it yet,” Dr. Fauci said in a Tuesday afternoon COVID-19 briefing.

https://www.cnbc.com/2020/03/31/us-health-official-fauci-sees-glimmers-that-social-distancing-is-dampening-coronavirus-outbreak.html?__source=iosappshare%7Ccom.apple.UIKit.activity.Message

Protect Your Retirement from Coronavirus Market Swings | Money

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From February 19th through February 27, the S&P 500 fell more than 11%,  In contrast, the Bloomberg Barclays U.S. Aggregate bond index —the benchmark tracked by core bond funds— is up 1%. If you are using Treasury bonds in your portfolio, you’ve likely seen a bigger gain of approximately 1.78%.

The coronavirus induced market collapse shows how using a three-bucket strategy can make it easier to stay the course during stock sell-offs. With a cash bucket and a bond bucket, you can generate the income you need without needing to touch your stock bucket when it is down.

3 Bucket Approach

Buckets 1 and 2 (cash and bonds) buy time for bucket 3 (stocks) to recover. Bucket 3 offer the best shot of delivering inflation-beating gains over the long-term.  Inflation and loss of purchasing power of the dollar are a very real threat for a retirement that can stretch 30 years.

  • Bucket No. 1 holds two to three years’ worth of living expenses—reduced by your guaranteed income—in cash or cash equivalents.
  • The intermediate bucket—bucket No. 2—should hold three to seven years’ worth of expenses in a balanced portfolio with investments that give off a yield, such as dividend-paying stocks and bonds or bond funds.
  • Bucket No. 3 holds longer-term funds that may not be needed for several years. It can be invested in riskier assets, such as 100% stocks.

To read more:  https://money.com/coronavirus-protect-retirement/

References:

  1. https://money.com/bucket-approach-for-retirement-income-how-to-use/
  2. https://money.com/coronavirus-protect-retirement/

Should You Wear a Mask | Mayo Clinic

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Should you wear a face mask to protect yourself from the virus, even if you’re not sick?

In a video posted by Dr. Nipunie Rajapakse, a Mayo Clinic infectious diseases specialist, states CDC current recommendation:

“The current recommendations regarding masks are that if you yourself are sick with fever and cough, you can wear a surgical mask to prevent transmission to other people. If you are healthy, there is not thought to be any additional benefit to wearing a mask yourself because the mask is not airtight and does not necessarily prevent breathing in of these viral particles, which are very tiny,” says Dr. Nipunie Rajapakse, a Mayo Clinic infectious diseases specialist.

If you are going to a clinic or hospital to be seen by a health care provider because of concerns of cough or fever, Dr. Rajapakse recommends wearing a face mask to avoid transmitting possible infection or virus to other patients and medical staff. Face masks also are recommended for health care workers and people who are taking care of someone infected with COVID-19 in close settings (at home or in a health care facility).

“Most people who do not work in a health care setting have not received training on how to put on and take off the masks properly. Doing this incorrectly can actually increase your risk of infection. Also, people who are wearing masks tend to touch their face more than those who are not, which can paradoxically result in an increased risk of infection as well,” says Dr. Rajapakse.

She says instead of wearing masks, people need to:

  • Wash their hands frequently using soap and water for 20 seconds or an alcohol-based hand rub.
  • Avoid touching their eyes, nose and mouth.
  • Practice cough etiquette. Cough into a flexed elbow or tissue, discard the tissue in the trash, and wash hands.
  • Stay home from school, work and public places if feeling unwell.

  1. Nipunie Rajapakse, M.D./Infectious Diseases/Mayo Clinic
  2. https://newsnetwork.mayoclinic.org/discussion/covid-19-when-should-you-wear-a-face-mask/

Coronavirus 2020 Outbreak: Latest Updates | By WebMD News Staff

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Updated Mar 29 at 4:41 PM

Facts and Faith, not Fear

The United States leads the world in cases of “confirmed” COVID-19 infections.

We stress “confirmed” cases since it is difficult to believe the accuracy and reliability of the number of cases of actual COVID-19 infections within China. We do not know if China’s reported number of cases of confirmed COVID-19 infections stands lower than the U.S. because there were less tests performed or due to obfuscation. We will probably never know for sure.

WebMD provides the latest updates on cases, government response, travel restrictions, and more here.

Coronavirus cases in U.S.

“Just a little bit of separation can stop a fire from spreading”  – CDC Director Dr. Robert Redfield

The first coronavirus case in the U.S. was confirmed back on January 20 when a 35-year-old man went to an urgent care clinic in Snohomish County, Washington. He’d recently returned from visiting Wuhan, China, where the coronavirus was first noticed.

Since the first reported case, the virus has spread to all 50 states. The worst-hit state is New York, with more than 40,000 cases and 500 deaths. Other states with high case numbers include New Jersey, Washington, and California.

The first coronavirus death in the United States occurred in late February in Washington state. Since then, about 1,500 people have died in the United States. The only states not reporting deaths are Hawaii, Rhode Island, West Virginia, and Wyoming.

The Centers for Disease Control and Prevention, citing “extensive community transmission” of COVID-19 in New York, New Jersey and Connecticut late Saturday urged residents to refrain from non-essential travel for 14 days effective immediately. The advisory does not apply to employees of critical infrastructure industries such as trucking, public health professionals, financial services and food supply.

Worldwide Coronavirus Cases

According to Johns Hopkins University, there are more than 701,525 cases and 33,174 deaths worldwide. More than 145,000 people have also recovered.

As of early Sunday afternoon, the U.S. has the most cases followed by Italy’s 97,689, and China’s 81,439:

  • United States: 131,366
  • Italy: 97,689
  • China: 81,439
  • Spain: 78,799
  • Germany: 60,887
  • Iran: 38,309
  • France: 37,611
  • United Kingdom: 19,522
  • Switzerland: 14,795
  • Netherlands: 10,923
  • Belgium: 10,836
  • South Korea: 9,583

The top five in COVID-9 deaths are:

  • Italy: 10,779
  • Spain: 6,606
  • China: 3,300
  • Iran: 2,640
  • United States: 2,328
  • France: 2,314

Rapid-Result Coronavirus Test

The FDA has authorized a coronavirus test that the manufacturer says can tell if someone is infected with the virus within 5 minutes.

The test is meant to be used in places like a doctor’s office, emergency room, or urgent care center. The test will provide results through a platform currently used by many of those locations for tests like flu and strep, instead of sending the throat or nasal swab to a lab for analysis.

The FDA’s emergency use authorization (EUA), does not mean that the FDA has approved the test, but that it is allowing its use because of the coronavirus outbreak.

To read more of the update, go to:

https://www.webmd.com/lung/news/20200124/coronavirus-2020-outbreak-latest-updates

https://www.cnbc.com/2020/03/31/china-coronavirus-case-numbers-cant-be-compared-to-elsewhere-economist.html?__source=facebook%7Cmain

Sources:

  1. https://www.bloomberg.com/news/articles/2020-04-01/china-concealed-extent-of-virus-outbreak-u-s-intelligence-says
  2. https://www.who.int/emergencies/diseases/novel-coronavirus-2019
  3. https://www.cdc.gov/coronavirus/2019-nCoV/index.html

* The respiratory infection, named COVID-19 by the World Health Organization (WHO), is closely related to SARS and MERS.

Dr. Anthony Fauci with Trevor Noah

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Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, was the guest on the latest quarantine edition of The Daily Show with Trevor Noah, offering his insights on what makes COVID-19 so insidious.

He had particularly pointed advice for younger people about the spread of the virus: “Even though you are young, you are not absolutely invulnerable,” Fauci said. “So, you have a responsibility, not only to protect yourself but you almost have a societal, moral responsibility to protect other people.”

Travelzoo: 20 Amazing Places You Can Visit Without Leaving Home

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Travelzoo, a travel publisher, provide these 20 absolutely stunning virtual travel experiences you can have without leaving your home. These places belong on any traveler’s bucket list — some of the world’s finest museums, natural wonders and architecture; they’re among the most enduring reasons we get up and go. And they’ve been captured here in digital forms that retain their magic while making them infinitely more accessible.

If this is the first time you’ve been to some of these places, you’ll find some of earth’s most impressive treasures: natural wonders; works of art; architectural miracles and much more. They belong on any traveler’s bucket list.

They hope you’ll find joy exploring them from afar.  Go to virtual tour:  Travelzoo: 20 Amazing Places you can visit without leaving home

Make Money in Stocks | Forbes

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Everyone can grow life-changing wealth and have strong investment results over the long term.

Investing in stocks is one of the most important financial skills you need to master. History has shown that the earlier you start and the longer you stay invested in the market the better your investments will be. On average, stocks have given an annualized return of around 10%. At that rate, your investments would double every 7.2 years.

Let’s say you start with $10,000. After a 40 year career, that turns into at least $320K from doubling 5 times. That’s from a single $10,000 investment.

And, it is important to understand that you can’t accumulate wealth off just your salary. Savings and bonds won’t do it either, the return isn’t high enough to make an impact during your lifetime.

But, you should not invest in stocks in a vacuum. It is important to develop a financial road map to help you invest to meet a goal, whether this means sending the kids to college, retire well, buy a house, get that BMW or some marvelous combination thereof.

When you have a financial plan, you have a road map to guide your investing to help you reach your financial goals. The important thing is that you keep your investments on track in order to reach your financial goals. 

Nick Murray may have said it best when he said,

“All financial success comes from acting on a plan. A lot of financial failures come from reacting to the market.”

Whether in real estate, stocks or even owning a business, you will never be able to achieve financial freedom without investing in assets and benefiting from the magic of compounding interest.

Few people will be able to save enough for a secure retirement without investing.

To read more: https://www.iwillteachyoutoberich.com/blog/make-money-in-stocks/

Sources:

  1. https://www.forbes.com/sites/davidrae/2020/03/10/4-investor-mistakes/#129fd4df15bb
  2. https://www.forbes.com/sites/davidrae/2020/03/22/is-now-the-time-to-buy-stocks/#3fca8a8d1829