Tag Archives: BMO

Deloitte Report Reveals Mid-Market Companies Expect U.S. Economic Growth

Arizona business owners optimistic for 2015

BMO Harris Bank released a study that found that business owners and executives in Arizona were optimistic about the prospects for the state’s economy in the coming year.

Eighty-six percent of respondents feel Arizona’s economy will grow or stay at the same level in 2015 (39 percent say it will improve, 47 percent think it will remain the same). That outpaces their optimism in the national economy, where only 63 percent feel the U.S. economy will improve or stay the same next year. More than one-third (37 percent) of the respondents believe the U.S. economy will worsen in 2015. Arizona business owners’ local confidence is reflected in their positive attitude regarding growth in their own business, with more than half believing their business will grow next year.

“While there are some causes for concern, both internationally and domestically, business owners and executives continue to exude confidence in their ability to grow their business in today’s economic environment“, said Tim Bruckner, Arizona Head, Commercial Banking, BMO Harris Bank. “That continued confidence is vital to the business-led economic recovery that has taken place over the past five years.”

The survey asked Arizona business owners/executives if they believe the U.S. economy will improve, stay at the same level or worsen in 2015.
·         41 percent expect the economy to improve
·         22 percent expect the economy to remain at the same level
·         37 percent expect the economy to worsen

The survey also asked the same respondents if they believe their business will grow, stay at the same level, or shrink in 2015.
·         51 percent predicted growth in 2015 for their business
·         32 percent expect their business to remain at the same level
·         17 percent believe their business will shrink in 2015, an 11 percent increase from last year’s results

BMO Harris Bank conducted the same survey one year earlier, and the Arizona results this year were similar compared to 12 months ago with a few exceptions: In 2014, one-fourth of business owners expected the U.S. economy to worsen. That number this year increased to 37 percent. A year ago, 38 percent felt the state’s economy would stay the same. In the most recent survey, 47 percent of respondents expect Arizona’s to remain the same..

“The coming year is being heralded by positive momentum in consumer spending, which is music to businesses’ ears,” said Michael Gregory, Head of U.S. Economics, BMO Capital Markets. “Spending is finding support from strong job growth, lower energy costs and an appreciating U.S. dollar. In reaction to continued sturdy consumer spending, we look for more businesses to expand their production, lifting both capital expenditures and hiring. This job-led, domestic demand should propel economic growth 3% in 2015, the best result in a decade.”

The survey was conducted by Pollara with an online sample of 781 American business owners between September 8 and 18, 2014. A probability sample of this size would be accurate to +/- 3.5 percent, 19 times out of 20.

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Most High-Net Worth Arizonans Enjoy Hobby Investing

BMO Private Bank today released the results of a study on high-net worth Arizonans (those with at least $1 million in investable assets) and hobby (or passion) investing. The study, the fifth and last in a series by BMO Private Bank examining trends among the affluent, found that half of the state’s wealthy engage in some form of hobby investing. This compares to the national average of 68 percent.

Hobby investing is defined as adding collectible assets to one’s portfolio as a means of diversification and, just as important, as a way to have and to hold the things investors love the most.

“While diversification is critical when structuring a portfolio, hobby investments should be limited to a relatively small portion of an investor’s overall portfolio because of the unique risk and liquidity characteristics associated with most collectible assets,” said Mike Sullivan, Director of Investments – Western U.S, BMO Private Bank.

The study found that the items in which the Grand Canyon State’s affluent are most passionate about investing include:

* Art (25 percent)
* Jewelry and coins (23 percent each)
* Stamps (18 percent)
* Antiques and sports memorabilia (13 percent each)
* Classic cars and wine (10 percent each)

“People who choose to invest in their hobbies often do so because it allows them to feel a sense of engagement without having to spend a lot of time on them. Many hobby investors are keen to create a legacy to pass on to their heirs – one that is unique to them and reflects their interests,” said Jack Ablin, Chief Investment Officer, BMO Private Bank.

Why do People Engage in Hobby Investing?

According to the study, one of the main reasons why Arizona’s affluent engage in hobby investing is simply because it is “fun” (65 percent). Other reasons identified include:

* Combines interests with investing (50 percent)
* Allows for showing off investments to others (20 percent)
* Provides something unique to pass down to heirs (15 percent)
* Provides sound investments that will grow in value (15 percent)

Regardless of what influences people to combine their hobbies with investing, Mr. Ablin noted that, as with any form of investing, there are a few cautionary factors Arizonans of all income levels need to consider. For example:

Antiques: can be very illiquid and therefore not suitable for those who may need to convert them to cash in a short period of time.
Wine and art collecting: are long-term propositions, so not appropriate for those with a short-term investing horizon.
Stamps and coins: there is a robust counterfeit market in both these items, so investors need to be careful about their authenticity and well-educated about the risks.
Comic book collecting: may be trendy today, but the market may not be so strong in the long or even the medium term.

Key National Findings:

On a national level, the study found:
* Two-thirds (68 percent) of high net-worth Americans have a hobby investment.
T* he most common hobby investments are coins (38 percent), art (36 percent), and jewelry (31 percent).
* High net-worth Americans are most likely to engage in hobby investments because they find it “fun” (62 percent), because it is a way to combine an interest of theirs with investing (54 percent) and because it enables them to pass something special down to their loved ones (40 percent).
* Four-in-ten (40 percent) say they invest in their hobbies because it is a sound investment which will appreciate in value, with this being a larger motivator for men than women (41 percent vs. 36 percent).

The online survey was conducted by Pollara between March 28th and April 11th, 2013 with a sample of 482 American adults who have $1M+ in investable assets. The margin of error for a probability sample of this size is ± 4.5%, 19 times out of 20.

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BMO Names Miller as President, Western U.S.

BMO Private Bank announced today that Matt Miller has been promoted to President, Western U.S. In this role, he will be responsible for the strategic development and delivery of wealth management services for high-net-worth individuals, family-owned businesses, endowments and foundations throughout the Western U.S.

Miller has nearly 30 years of experience in the financial services industry. He joined the organization in 2009 as Managing Director. During this time, he was responsible for organizing the western regional hub office and recruiting many of its senior managers and advisors.

“Matt is an ideal fit for this position. He is passionate about guiding his clients and helping them achieve their financial goals,” said Terry Jenkins, President and CEO, BMO Private Bank, U.S. “He leads by example, is focused on excellence and motivates his teams to success. We are confident the Western region will achieve even greater success in the years to come.”

Miller is headquartered at BMO Private Bank’s Scottsdale location, which also serves as the hub of Western regional operations. He will oversee a team of 75 financial professionals located in Arizona, Utah and Washington.

A fourth-generation Arizonan, Miller is an active leader in local business and civic communities. He currently serves on the board of directors for Teach for America Arizona, Valley of the Sun United Way Financial Stability Council and volunteers regularly at JAG (Jobs for Arizona Graduates). He previously served on the board of the University Medical Center in Tucson for 12 years. Miller earned a Bachelor of Science in Finance and Accounting from the University of Arizona.

“This is an exciting time to lead an organization that is poised for significant growth,” said Miller. “The caliber of our team is second to none, and our clients benefit from industry-leading planning tools that enable us to provide the best in financial planning and analysis.”

BMO Private Bank has Arizona locations in Scottsdale, Phoenix and Tucson. For more information about services and operations, visit www.bmoprivatebank.com.

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High-Net-Worth Arizonans Upbeat about Economy

A study released today by BMO Private Bank has revealed that affluent Arizonans are optimistic about what the future holds for the U.S. economy.  The study is the second in a series by BMO Private Bank examining trends among high-net worth individuals (those with investible assets of $1 million or more) in Arizona and across the country.

According to the study, 65 percent of Arizona’s affluent expect the U.S. economy to improve over the next year. Additionally, almost half (48 percent) say they are financially better off now than they were before the 2008 recession.

Other key highlights of the study include:

* Affluent Arizonans consider stocks (65 percent) and real estate (58 percent) as the investments most likely to deliver solid returns in the next five years.
* They see the health sector (83 percent) as the most promising in which to invest, followed by the energy and technology sectors (73 percent each). They are least optimistic about the mining (40 percent) and agricultural (28 percent) sectors.
* Arizona’s affluent are spending more or the same since before the recession on entertainment/leisure activities (88 percent) and vacations (85 percent).

“Confidence in the economy has given Arizona’s wealthy greater peace of mind,” said Mike Sullivan, CFA, Regional Director – Investments, Western US, BMO Private Bank. “They are relaxing more, spending more, and making more thoughtful decisions about their investment strategies – all of which will continue to help stimulate economic growth within the state.”

On a national level, the study found:

* Almost two-thirds (61 percent) of high-net worth Americans say they are better off today than they were before the recession.
* Sixty percent of the nation’s affluent are optimistic about what the future holds for the U.S. economy.
* They are most bullish about the technology (80 percent), health (78 percent) and energy (77 percent) sectors and least optimistic about the prospects for the manufacturing (50 percent), agricultural (46 percent) and mining (43 percent) sectors.
* They are spending more money or the same amount as before September 2008 in a number of areas, including:

* Entertainment and leisure activities (86 percent)
* Travel and vacations (83 percent)
* Club memberships (81 percent)
* Collections and hobbies (80 percent)
* Clothing and accessories (77 percent)