It’s a challenging period for fixed income investors given uncertainties around the economic outlook and monetary policy. While some are making bold bets on whether inflation will perk up once again or the economy fall into a recession, CIBC recommends that investors embrace this period of ‘higher for longer’ by focusing on short duration and high quality bonds.

With this strategy, investors can take advantage of generous yields while shielding themselves from potential risks. In terms of the bank’s outlook, its base case remains a moderate slowdown and a mild recession. Yet, it believes that many of these risks have already been priced in which is one factor in its bullishness towards the asset class.

Due to recent data indicating a pullback in consumer spending, weakness in retail sales, and a slowdown in housing activity, the firm believes that recession is more likely than another period of spiking inflation. Further, credit card balances are rising, while excess savings from the pandemic have been basically depleted.

If this scenario were to materialize, inflation would likely trend lower which would give central banks more latitude to loosen policy and lead to price appreciation for fixed income. 

Finsum: CIBC shared some thoughts on the economy and fixed income. It’s bullish on the asset class as it believes a mild recession is likely next year.

Direct indexing is the convergence of two developments. One is that we increasingly live in a world of customization and personalization whether it comes to our newsfeeds, food orders, playlists, etc. The other is that research continues to show that most investors are better off investing passively rather than actively managing their portfolios.

At first glance, there seems to be a contradiction between these two notions. However, direct indexing manages to thread the needle by retaining the benefits of passive investing such as diversification and low costs while also allowing for customization in order to account for an investors’ goals and needs.

For instance, a tech executive may have outsized exposure to the industry due to some compensation in the form of stock options. In their own portfolio, they may look to reduce exposure to tech in order to create more diversification and dampen risk. 

Another benefit is that capital gains losses can be more effectively harvested with direct indexing. This means that if the tech executive were to sell some of their stock options, then the tax bill can be lowered by applying harvested tax losses from the direct indexing portfolio.   

Finsum: Direct indexing provides many advantages compared to passive or active management. Here are some of the benefits.

You don’t have to double check a wealth of sources like wikepedia to ferret outthe meaning of succession plaining; it’s simply the way you pinpoint and developing your organization’s possible leaders in the making as well as key employees, according to linkedin.com.

It abets your ability to make sure you maintain continuity, hang onto talent and get ready for changes that weren’t expected. That said, succession planning recruiting posed challenges and is susceptible to mistakes. 

How can you go about circumventing pitfalls and biases in the process? These strategies can help:

Assess your current and future needs

Develop a talent pool and a succession plan

Use objective and consistent methods

Involve multiple stakeholders and perspectives

Monitor and evaluate your results

Broadly speaking, talent development’s on the ascension – and fast – with succession planning squarely in the middle, according to sigmaassessmentsystems.com.

For senior managers and leaders of organizations who need to keep current on industry trends to help their team with the most effective and relevant growth opportunities, succession planning struts important implications.

SIGMA gathered a report on the State of Succession Planning for the year. Four emerging trends:

--Recruiting and retention of staff are the focus of most organizations

--Keeping up with Industry innovation’s key for many organizations to recognize

--Stepping up customer experience is a commitment among many leaders

--The transformation of their brand and culture’s a goal of a significant number of organizations

Each month, more than four million workers walked away from their job, according a 2021 U.S. Bureau of Labor Statistics report.