WSJ Wealth Adviser Briefing: Reason for Investors to Look Away, Private Debt, Athletes Conquer Distance

With their portfolios gyrating and an election looming, investors are spending more time than usual pondering what their taxes will look like in the future. But they haven’t given much thought lately to “the cruelest tax” — inflation. Maybe they should.

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.

ELECTION

Trump’s Positive Covid Test Is Another Reason for Investors to Look Away: It would be difficult to imagine a U.S. election subject to more uncertainty than this year’s. The less investors bank on specific outcomes the better.

CORONAVIRUS OUTLOOK

Covid-19 Vaccines Should First Go to Health Workers, First Responders, Group Recommends: Certain health workers and first responders should be the first to receive a Covid-19 vaccine when one becomes available, followed by people with health conditions that put them at higher risk of severe Covid-19 disease, a special U.S. committee recommended.

PLANNING & INVESTING

Canadian Pensions Find Opportunity in Private Debt: Canadian public pension funds scooped up private debt as market upheaval from Covid-19 left borrowers willing to offer appealing terms.

MARKET TALK

From Dow Jones Newswires

The economic impact of the coronavirus pandemic has been “brutal,” says Paul Gruenwald, global chief economist at S&P Global Ratings. Industrial production and retail sales growth data in the U.S., the eurozone and China in the third quarter suggest an economic rebound has begun, but it’s uneven and not yet sustainable, Gruenwald says in a webinar. The rating agency expects the global economy to shrink by 4.1% this year, with risks tilted to the downside. (lorena.ruibal@wsj.com; @lorena_rbal)

September’s decline in eurozone core inflation to a new record low was partly due to temporary factors that will reverse in October, but underlying price pressures are clearly weak, Jack Allen-Reynolds, senior Europe economist at Capital Economics, says. Looking ahead, inflation will probably rise a touch next year as oil prices increase, Germany’s VAT cut is reversed and as long as prices in the tourism sector don’t keep falling sharply, the economist says. “But weak aggregate demand means that inflation looks likely to remain far below the near-2% target,” Allen-Reynolds says. Capital Economics expects the European Central Bank to loosen monetary policy further, perhaps before the end of the year. (maria.martinez@wsj.com)

BUSINESS & PRACTICE

Banks Can Only Tighten Their Belts So Much: For investors, revelations about banks and money laundering highlight just how hard it will be for banks to improve returns if both revenues and costs are under pressure.

IMPACT INVESTING

European Sales of ESG Bonds Hit Fresh Highs: Sales of European corporate bonds linked to Environmental, Social and Governance (ESG) factors have hit EUR29 billion so far this year, highlighting the asset class’ progress towards becoming more mainstream, says Rabobank. “These types of bonds are no longer only for the selected few as year to date ESG issuances reached a record EUR29bn,” says the Dutch bank. The European Central Bank’s announcement that it will make sustainability-linked bonds with variable coupon structures eligible for the central bank’s bond-purchasing programs from January 2021 is likely to boost ESG issuance further, it says. German auto makers Daimler and Volkswagen as well as Swiss pharmaceutical firm Novartis and French luxury firm Chanel all sold ESG bonds in September.

TALKING POINTS 

Athletes Are Conquering Distance. Sports Will Never Be the Same.: Basketball stars are shooting from deeper, golfers are driving farther and marathoners are running faster. Today’s athletes are breaking their games.

TRAVEL & LIFESTYLE

Pandemic Home Buyers Drive Aspen’s New Gold Rush: Sales and prices jump as the Colorado town attracts urbanites from both coasts and Texas; some local businesses smell opportunity.

ABOUT US

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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