Kevin DeAngelis is a senior financial consultant with Bank Rhode Island’s investment services department, BARI Investments. He has 20 years of experience in the financial industry and holds the Certified Retirement Advisor designation.
DeAngelis has a bachelor’s degree in marketing from the University of Rhode Island.
PBN: What do you see as the defining element for investments in 2013?
DEANGELIS: Re-allocation - 2013 maybe the year investors reduce bond holdings and increase stock and alternative investments. Stocks have fallen out of favor with many investors, but have been one of the better performing assets classes over the past few years. The calendar turned, but we believe that trend may continue.
PBN: Do you see any major changes in investment strategies you’ll be recommending to clients in the coming year?
DEANGELIS: With bond managers continuing to hold large embedded gains, many of these fund managers will have challenges maintaining strong performance. For example, if unemployment numbers continue to decline, the Fed may reduce or eliminate quantitative easing. At that point, interest rates may begin to increase, causing bond prices to go down, something most investors have not experienced. Therefore, we are reviewing our clients overall portfolio bond exposure.
PBN: In your 20 years of experience as a financial consultant, do you see the current national issues affecting investments as much different from past years? Is the environment less predictable, for example, or more complex in ways that impact short- or long-term investments?
DEANGELIS: In my opinion, the environment is more predictable than it’s been in quite some time. Politicians actually have less influence on the trajectory of the economy than most people realize. The question most people are not asking is, “What if things go right?” Investors need to diversify to benefit if corporate earnings are better than expected.
PBN: What do you see as the major challenges for individual investors? For businesses?
DEANGELIS: The major challenge for investors and business is to move beyond the financial crisis of 2008. The strategies for building wealth in a slow growth economy are vastly different than an economy on the verge of a real estate collapse. What many investors consider to be defensive investments may prove to be anything but if the economy and inflation begins to accelerate.
PBN: What is your perspective on Rhode Island as a financial center? Do you see the state’s importance in the financial world remaining the same or are there opportunities for the state to expand its financial community and influence?
DEANGELIS: Rhode Island has the opportunity to become a first-rate second-tier financial center. Yes, I do believe there are opportunities if the tax environment becomes more favorable. Delaware eliminated usury laws and altered the tax on profits for credit card companies. Guess where many of those companies are headquartered? All businesses are looking for a competitive tax environment and certainty on the rules creating those advantages.
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