(New York)

When you think of all the risks and all the opportunities for the muni market right now, you might be missing one of the very biggest. While a lot of talk has focused on how Biden and the Democrats—and their respective tax packages—could help muni finances, the reality is the drought out West is a big risk to the muni market. 75% of the West is in an extreme drought right now, representing almost 60m Americans. If that continues it could significantly impact muni finances.

FINSUM: Only 26% of the muni market lies in the drought area, which mitigates systemic risk, but very issuers could be badly hit. Be careful of large muni holdings in drought-stricken areas.

(New York)

Something very interesting is happening in the annuities market: a new generation is taking the lead. While for many advisors, getting Baby Boomers into annuities as they near retirement has been the focus, a new generation—Gen X—has been turning to the product because of a lack of pensions. According to a new industry study “investors under 55 are considerably more interested in annuities than Baby Boomers; 58% embrace the product as an alternative to pensions”. According to Jean Statler, CEO of the Alliance for Lifetime Income, “The high level of interest in annuities and protection among younger investors is extraordinary … Unfortunately, there’s still a large gap between what investors say is important to them and what financial professionals think is important”.

FINSUM: This makes a lot of sense. The generations younger than Boomers have experienced more income insecurity and retirement uncertainty and are more focused on their ability to control their own retirement income.

(Houston)

Oil prices are at a fresh peak seemingly every day. Some who have been watching the space for years might be wondering if that will prove fleeting or if it is the start of a big bull market run. Goldman sees oil as staying between $75-80 per barrel over the next 18 months, which will help companies deleverage and improve their returns. OPEC seems likely to be supportive of current prices. Given all this, Goldman thinks oil stocks are a good idea, recommending Occidental, Exxon-Mobil, Devon, Hess, and Schlumberger, among others.

FINSUM: If you believe in the economic recovery then commodities seem likely to have a strong run, oil included.

(New York)

Volatility hasn’t been on almost anyone's minds for most of 2021, but…see the full story on our partner Magnifi’s site.

(New York)

At the onset of the pandemic, the Fed and treasury tied up stock buybacks as part of a regulatory measure coupled to the…see the full story on our partner Magnifi’s site.