COVID-19 has upended just about everything, and we’re still working through it—how we work, shop, socialize, learn, worship, receive healthcare and care for others. It has laid bare both strengths and weakness in our institutions, processes and systems. The pandemic has altered life for every age group in almost every way. The coronavirus, after all, is not interested in career dreams, childcare situations or travel plans; it is only interested in host cells. 

Key innovations that emerged during this pandemic will outlive it. Others are yet to reveal themselves but will surely be part of the legacy of COVID-19. CIBC is committed to providing the perspectives and insights of top thinkers in various fields on what the legacy of COVID-19 could be. In previous installments, we presented views on biotechnology and vaccines, work and careers, artificial intelligence in healthcare during the time of COVID-19, and a CEO’s view on managing healthcare during a pandemic. In this installment, we talk with Tim Daly, CEO of EdNavigator, on the state of education during COVID-19 and how this pandemic is altering learning, children and families.  

We first talked with Tim Daly in late July 2020. Four months later, the situation with schools, and the pandemic overall, changed so much that we revisited the topic to bring it up to date. In late July, the U.S. had reported 4.54 million cases and 154,120 deaths from COVID-19, and schools were talking about reopening. In late November, the U.S. reported 13.6 million cases and 269,000 deaths,* and schools opened and closed, reopened, or never opened. 

Key innovations that emerged during this pandemic will outlive it. Others are yet to reveal themselves but will surely be part of the legacy of COVID-19. CIBC Private Wealth is committed to bringing to you the perspective and insight of top thinkers in various fields on what the legacy of COVID-19 could be. In previous installments, we presented views on biotech and vaccines, work and careers, and artificial intelligence in healthcare during the time of COVID-19 (available on our website). In this installment, we talk with Kevin Tabb, MD, the president and CEO of Beth Israel Lahey Health, a healthcare system across Eastern Massachusetts comprised of 13 hospitals, including four academic and teaching hospitals affiliated with Harvard Medical School and Tufts University School of Medicine, and more than 4,000 physicians and 35,000 employees.

Lance Marr is a senior investment analyst providing research and analytical support for the CIBC Energy Infrastructure strategy and serves as team lead on the firm’s Clean Energy strategy.

The energy sector arguably has the most at stake with a change in the political landscape. As we weigh the scenarios, the status quo appears likely in the event of a Trump win, with a benign regulatory environment, federal support for new energy infrastructure projects and no deals with Iran or Venezuela to bring more oil production on the market. While broadly positive, countering this are expectations for limited production growth as investors demand capital discipline in this low-price environment and state and local governments resisting advancement of new infrastructure projects.

When we consider the scenario for the energy sector under a Biden victory, the main focus will be on incentivizing clean energy. The most notable proposal is a $2 trillion climate plan that includes spending on infrastructure and incentives that would serve to accelerate the transition to clean energy. In a Democratic sweep, no doubt the odds of this plan coming to fruition increase. Obvious beneficiaries are companies exposed to renewable and clean energy at the expense of traditional energy companies. With that said, we don’t expect an outright assault on traditional energy companies. Instead, increased regulation on many facets of exploration and production are more likely than something more onerous, like a fracking ban. The result would be less restrictive on production, but with higher costs associated with that production. Furthermore, we may see restrictions on new permits in federally controlled areas, which could shift production to private lands.

Other areas of action would be a scrutiny of energy infrastructure projects under a Biden administration. A Biden team would likely also work to ease sanctions with Iran, allowing more oil on the market.

Brant Houston is a managing director and co-manager of the Disciplined Equity and Income Opportunities Strategies. 

In respect to financial stocks, the most significant issues related to the election are regulations, tax rates, interest rates and spending/deficits.

Under a Trump administration, regulations should continue to ease; under a Biden administration, it would be reasonable to expect additional scrutiny. In either case, the moves would likely be moderate.

Tax rates under the current administration are not likely to move dramatically. Banks were a major beneficiary of the Trump tax cuts in 2018, given their domestic focus. Any move to reverse these cuts by a Biden administration would hurt the banks. Also, increases in taxes on long-term capital gains and/or dividend income could impact how and where money is invested. Bringing long-term capital gain taxes to the short-term level may disincentivize long-term investing, raising trading volumes and volatility. 

Increased government spending under a Democrat administration on healthcare, infrastructure and climate could be a double-edged sword. On one hand, higher deficits may mean higher interest rates that could make stocks less attractive overall, but help banks’ earnings through higher net interest margin. But it is also important to note that deficits are not exclusively a Democrat issue, as we have seen the deficit balloon under the current administration. Any initiative to provide affordable care to the masses could have an economic benefit if it leads to a stronger financial position for individuals. If consumer credit improves, this would be a net positive for banks. And in terms of infrastructure spending, there could be a significant improvement in the employment situation.

Daniel Lubin received a Bachelor of Science in foreign service from the Georgetown University School of Foreign Service, and a Master of Business Administration with honors from Harvard Business School. 

In this installment, Deepali Vyas provides her insights on the latest advances with hiring and onboarding being done remotely, how COVID-19 is changing the career outlook of the youngest of the workforce, and why leadership matters more than ever now. The article also discusses how CIBC Private Wealth is adapting during this pandemic.

It is not uncommon for wealth advisors to assist clients with real estate purchases—whether it is to invest in commercial real estate or purchase a second home. More rare, however, is when a client calls and needs help purchasing and closing on a house in another country, prior to undertaking a two-year renovation—all in local currency. 

When buying international real estate, there are additional layers of complexity. But that didn’t deter CIBC Private Wealth from rising to the challenge. Instead, Vanesa Ringdahl, senior private banker, and I joined forces with Todd Liska, executive director of CIBC’s Foreign Exchange Group, and Keith Rofrano, head of the firm’s Mid-Market Solutions Group, to provide truly seamless and comprehensive service to help this client buy a new house in London and plan for a multi-year renovation.     

The Foreign Exchange team is a part of the company’s U.S. Capital Markets Group. They offer products and services that range from basic foreign exchange to customized hedging and risk management strategies. The team also provides 24-hour liquidity in 30 countries and select emerging market currencies, in addition to a full suite of products that includes spots, forwards, non-deliverable forwards, options and structured solutions.  

Such highly complex and technical products and services can be overwhelming for a lot of wealth management clients. But as CIBC is committed to providing integrated and holistic wealth management solutions that can address all of a client’s needs, perhaps a simpler illustration of one of the ways that the Foreign Exchange Team can serve clients is best summed up by a client’s simple request: “Please help me buy a house in London.” 

Art Graper is a senior relationship manager with more than 20 years of experience working with high net worth individuals. He specializes in advising clients in the development, execution and monitoring of comprehensive wealth management strategies.  

Find additional Coronavirus financial insights & resources. 

As the world economy trudges through the uncertainty of the COVID-19 pandemic, many investment and financial plans are on hold. However, these challenging times may present an opportunity to focus on how best to preserve wealth for the benefit of future generations.

With asset values depressed, as many now are, gifts can be an effective way to transfer wealth and even create a lasting financial legacy. While there are many ways to structure gifts, two common approaches are outright gifts and gifts to dynasty trusts.

Read more about Proactive Planning During a Time of Uncertainty and Volatility:
https://private-wealth.us.cibc.com/blog/-/blogs/proactive-planning-during-a-time-of-uncertainty-and-volatility

Do you have loved ones you want to help, but aren’t ready to give away significant assets yet? Would you like to take advantage of the low interest rate environment and transfer wealth in a cost-effective way with minimal transfer tax consequences?

It is important, perhaps now more than ever, to continue to look for wealth planning opportunities and not lose sight of the things that matter most in life—which for many, begins with loved ones.  For those who are looking to engage in wealth planning while helping a loved one who may be less financially secure, one strategy that may help accomplish both goals is an intra-family loan.

Read more about Proactive Planning During a Time of Uncertainty and Volatility

Read more about Proactive Planning During a Time of Uncertainty and Volatility:
https://private-wealth.us.cibc.com/blog/-/blogs/proactive-planning-during-a-time-of-uncertainty-and-volatility

Read more about Proactive Planning During a Time of Uncertainty and Volatility:
https://private-wealth.us.cibc.com/blog/-/blogs/proactive-planning-during-a-time-of-uncertainty-and-volatility

Do you have a traditional IRA that will produce ordinary income on distributions? Would you like to possibly mitigate income taxes on those distributions for yourself as well as your heirs?

There may be a silver lining for retirement savings and wealth planning during this time of uncertainty. The current market downturn is an opportunity to potentially save on income taxes and generate income tax free growth for retirement savings as markets recover.

Learn more about proactive planning during a time of uncertainty and volatility:
https://private-wealth.us.cibc.com/blog/-/blogs/proactive-planning-during-a-time-of-uncertainty-and-volatility

Global pandemic fears, plunging stocks, the Fed’s emergency interest rate cut and a steep decline in 10-year Treasury yields wreaked havoc on many investment portfolios in recent weeks.

Regardless of how bleak the situation may appear, low stock prices and rock-bottom interest rates are creating potentially ideal conditions for certain wealth planning strategies. While increased market volatility can be unnerving for even the best investors, times like these can also present opportunities to implement wealth transfer strategies that can generate significant tax savings.  One such strategy is the grantor retained annuity trust (GRAT).

Learn more about proactive planning during a time of uncertainty and volatility:
https://private-wealth.us.cibc.com/blog/-/blogs/proactive-planning-during-a-time-of-uncertainty-and-volatility

Digital assets, however, go beyond accounts with statements that may come via email. A digital asset also can be text messages, computer files, domain names you own, photos, voice mail messages, social media accounts, blogs, apps on your phone, file-sharing accounts, online dating accounts, doctors’ portals, loyalty program benefits, virtual items in gaming and even communications that are stored by the digital assistant Alexa.

Read more in The Advisor magazine.

- Phil Lorenz, CFA, equities analyst for CIBC Private Wealth.

Not all tech investment opportunities are as amazing as a 3-D printed house. Some are as ordinary looking as a metal box on a light pole, but with the promise of bringing about one of the biggest communication transformations we’ve seen. Here are three top trends in technology and the potential they offer.

Read more in The Advisor magazine. 

Read more in The Advisor magazine. 

To better understand the role of emotions in investing, we talked with Morgan Housel, a partner at the Collaborative Fund, former columnist at The Wall Street Journal and analyst at The Motley Fool, about the implications of behavioral finance.

• The high-stakes relationship between the United States and China, which stems from four main tensions
• Why Russia is both resurgent and fundamentally weak
• Why Brexit is a great example of how strategic communications can change the narrative
• The four key priorities the United States should focus on to retake global leadership

For more details surrounding Admiral Stavridis’ views on these important topics, read his featured article, The Sea is One, in the Spring 2019 issue of The Advisor or listen to the brief audio excerpt from his interview.