-George Santayana
January is here. We're winding down from the excitement of the holidays and getting back to business. A new year brings us new opportunities, new clients and new products. January is an especially important time for advisors, as we help clients re-evaluate their finances, make adjustments to their portfolios and prepare them for their future. In our ever-changing business, though, it is important to look back to where we came from to best prepare us to serve our clients during this changing environment.
Economy tied to policymakers
More than ever, our economy is tied into the political system we have in place. The most recent Nobel Prize winners for economic sciences, Christopher Sims and Thomas Sargent, were awarded the prize for their fascinating research on cause and effect in macroeconomics. What makes their research so groundbreaking and influential is the revelation that policymakers are some of the most powerful driving forces in not just the economy itself, but society's expectations of the economy. Changes in expectations lead to changes in consumer spending and so on.
