For nearly 20 years, the Jewish Community Foundation, Inc. has partnered with SEI, an investment firm based in Oaks, PA, to professionally manage the funds that the JCF holds thanks to generous donors.
During that timespan, SEI has worked closely with our Investment Committee to ensure that our investment portfolio is properly managed and earns a competitive return each year while mitigating risk.
As a service to its investors and the general public, SEI shares an Economic Outlook each quarter to provide insights on how the economy has performed and how things may go in the upcoming future.
We invite you to read SEI's latest publication in full, looking ahead from the recently completed third quarter. Titled "More Bricks in the Wall of Worry," this article covers a lot of ground, including the following conclusions, some of which were edited here for brevity:
The MSCI USA Index (a broad measure of U.S. equity markets) more than doubled since hitting a closing low on March 23, 2020. Outside of the U.S., equity market performance was not quite as stellar, but remains impressive.
The summer COVID-19 wave did slow the U.S. economy’s upward momentum during the third quarter... At the beginning of August, GDP was on track to grow by a 6.1% seasonally-adjusted annual growth rate. It is now signaling an advance of only 3.7%.
(W)e suspect that the gloom related to weakening economic growth may be overdone.
Once the latest COVID-19 wave passes, consumers’ spirits will likely revive. For example, households generally remain in good financial shape. Household wealth was at an all-time high, owing to booming stock and home prices.
(W)e believe that global economic growth will continue at a rate that significantly exceeds the sluggish pace that prevailed following the 2007-2009 global financial crisis over the next year or two.
The future will always be unpredictable, but by using relevant facts, data, and analysis, projections can be made to give a sense of what may lie ahead.
The JCF invests with the goal of consistent yearly growth for our endowment funds and donor advised funds, and we appreciate SEI's insights as guidance.
For questions about the JCF, SEI, or our investments, please contact us today.
Please note SEI's disclaimer: "This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is for educational purposes only and should not be relied upon by the reader as research or investment advice."
In addition, the JCF does not provide financial, legal, or tax advice, please consult with your trusted advisor as needed.