Euro Zone Growth Revised up to Highest Rate in Two Years
https://www.reuters.com/article/us-eurozone-economy-gdp-idUSKBN18Z13N
For a while, the U.S. was the best house in a bad neighborhood. It’s economic growth was tepid, but compared to others, it was relatively strong. That view may need to be reassessed, as Europe posts stronger economic numbers, as this story describes. Even though this is reflected in the relative stock market performance of the two countries, there is very little correlation between economic growth and stock market returns. There is a much stronger, inverse correlation between valuations and stock market returns, but there European stocks have the edge, too.
Fiduciary Rule Fight Brews While Bad Financial Advisors Multiply
I hate the idea that we have to have a Fiduciary Duty law, as it means more compliance work, even though in our advisory relationships, we act as a Registered Investment Advisor, where we already a fiduciary duty to our clients. Still, when I read the anecdotes in this article, I know the law is needed. You owe it to yourself to read this article, if for no other reason than to know some products to watch out for. If you’re like me, you’ll find yourself fuming as you read the cases.
RIA Models Retainer Fees After A McDonald’s Menu
At times, I find myself thinking that if I read another article about what millennials want, I’ll puke. Other times, I wonder what we can do to attract them to our practice…maybe avocado toast and coconut milk lattes? I do like the idea of alternatives to the traditional assets-under-management (AUM) fee model, and this article talks about an advisor offering he calls a “ ‘McDonald’s menu model’ of retainer-fee options.” In our RIA, we have the flexibility to implement these pricing options and have begun to offer them to clients where the traditional AUM fee model doesn’t make sense.
Five Common Mistakes People Make When Paying for College
With one in college and another soon to be there, I’m drawn to these article like a moth to a light. This article suggests that these are biggies: 1) Not applying for aid; 2) Not looking into a 529 [state tax benefits make many of these very attractive]; 3) not budgeting for true costs; 4) misfiring on scholarships [neglecting smaller ones, look local first]; 5) Obsessing about elite schools.
2017 Trends in Investing
This is a broad ranging survey of financial advisors. It covers the topics of Investments Used, Diversification, Asset Allocation/Rebalancing and others. It’s a treasure trove of information. One question asks about the level of confidence in a 60/40 stock/bond portfolio to produce similar results as it has historically. Degrees of confident total 50%, while those expressing doubt total 46%. (Put me in the very-doubtful camp.) 73% of respondents say that alternative investments comprise no more than 10% of client portfolios. When asked about the economic outlook over the next 6 months, 1 year, 2 years, and 5 years, bullishness was recorded by 52%, 51%, 47%, and 43% or respondents, respectively. Lots more in this piece. FWIW, 95% of respondents are CFP practitioners.
Smarsh Survey Highlights Firms’ Struggle To Keep Up With Electronic Communications
This article discusses the trouble that the financial services industry is having in monitoring client communications, all of which is regulated. 52% of respondents said the biggest compliance risk is with text messaging. Not even caring about the compliance aspects, I concur with this, as it may be clients’ favored way of communicating, LPL Financial and others says no because of the apparent inability to retain and oversee text messages. As in many cases, the regulatory framework can not keep up with technology.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
No strategy assures success or protects against loss. There is no guarantee that asset allocation or a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. The economic forecasts set forth may not develop as predicted.
An investment in ETFs involves additional risks such as not diversified, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking errors.
Prior to investing in a 529 Plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing