Annuities, which base their returns on market interest rates, are currently more attractive due to the highest rates since 2001. Fixed annuities are offering higher guaranteed rates, and fixed index annuities now have higher possible caps for returns. 

Variable annuities are less affected by interest rate changes since their returns depend on mutual fund performance. Many annuities offer initial bonuses, which can offset surrender charges if switching from an older annuity with lower rates.

 Age also impacts how beneficial high interest rates are, with younger annuity holders potentially locking in higher lifetime income. However, potential future rate cuts add urgency, but it's essential to ensure annuities align with long-term financial goals to avoid penalties.

Finsum: Fixed annuities are in a very favorable position giving a 40 year high in interest rates. 

Active ETFs have surged in popularity, dominating new launches, inflows, and headlines in the ETF market. At the 2024 Morningstar Investment Conference, industry experts discussed how active ETFs are reshaping the investment landscape.

Nicole Hunter from Dimensional Fund Advisors highlighted DFA’s aggressive entry into active ETFs, converting $30 billion from mutual funds and now holding over $140 billion in assets across 38 active ETFs. T. Rowe Price noted that although active ETFs account for only 5% of ETF assets, they represent 70% of recent launches.

 Despite their growth, active ETFs also face a high closure rate, with over 100 shutting down last year. The panelists discussed the benefits of ETFs, including tax efficiency and transparency, while also acknowledging that traditional mutual funds still have their place in the market.

Finsum: Some volatility is hard to read but both geopolitical and interest rates are relatively easy to capitalize on for active funds. 

Alternative investing, which includes assets like private equity, real estate, and hedge funds, is becoming more accessible beyond just the ultra-wealthy and institutions. These investments can enhance portfolio diversification and potentially mitigate risk due to their low correlation with public markets. 

Utilizing self-directed IRAs for alternative investments offers the added benefit of tax-free growth. The popularity of alternative assets is rising, with private market assets growing significantly and individual investors currently holding a small percentage of these assets. 

Diversifying with alternatives can help manage market risk, especially during volatile times. New investment platforms are making it easier to access alternative investments, allowing for a more customized and balanced portfolio approach.

China has firmly established itself as the third-largest gas market globally, trailing only the US and Russia, and surpassing the EU. As China’s gas demand grows, suppliers see it as increasingly significant compared to the declining European market. 

The EU’s dependency on foreign gas producers, with its push towards biogas and biomethane falling short, complicates its supply security. Despite EU's efforts, its domestic gas production continues to decline, increasing its reliance on imports, with spot LNG providing critical equilibrium between Asia and Europe. 

Europe faces high gas prices and volatility due to limited global production capacity and logistical constraints. Recent geopolitical events and sanctions, including Uniper’s termination of Russian gas contracts and the EU's 14th sanction package against Russia, further challenge Europe's gas supply dynamics.

Finsum: Natural gas will definitely see policy volatility due to the upcoming election, but for the meantime China is keeping demand high. 

The demand for technology to support model portfolio management and portfolio construction is on the rise as firms aim to centralize and scale these services to stay competitive. Model portfolios are becoming a game-changer for financial advisors, with significant growth expected over the next decade due to their efficiency in diversification, risk management, and tailored financial planning. 

Advisors increasingly rely on asset managers to help manage these portfolios, and Jacobi's technology facilitates this by centralizing performance analytics, integrating investment workflows, and generating professional client reports. T. Rowe Price, an early adopter, has experienced improved efficiency and client engagement through Jacobi's platform. 

Model portfolios use technology to enhances team collaboration and meets rising client demands, and they are driving efficiency and expanding market distribution for asset managers.

Finsum: Model portfolios have been one of the biggest technological innovations for financial advisors in the last decade.