FINSUM
Underrated International Golf Destinations
For golfers seeking an international adventure, several destinations that aren’t the typical Scottland or Ireland recommendations offer outstanding experiences.
Los Cabos and the Baja Peninsula are top-tier golf locations with courses designed by famous architects and breathtaking landscapes. Loreto in Mexico allows golfing in a UNESCO site, while the Pacific Coastline and Riviera Maya feature exceptional courses like El Camaleón.
Vietnam is rapidly emerging as a premier golf destination with diverse terrains and numerous new courses. Mauritius provides a unique blend of historical significance and stunning ocean-view courses like Iles aux Cerfs Golf Club. Each location promises a memorable golfing experience.
Finsum: The additional benefit of traffic and weather could make these great for later destinations in the season.
JPMorgan Makes International Splash in Bonds Market
Indian government bonds have been added to the JPMorgan GBI Emerging Market Global Series Index for the first time, reflecting a milestone for Indian markets. The move follows the RBI's 2020 decision to remove foreign investment restrictions on specific rupee debt.
Starting June 28, 27 Indian G-secs are now open to non-resident investors under the Fully Accessible Route, boosting their market presence. These bonds, with the longest duration in the index and a yield of 7%, present a significant opportunity for global investors.
This inclusion is expected to raise foreign ownership of Indian government debt from 2% to 4.4% and may lead to further additions in other global indices.
Finsum: Investors might start flocking to EM as rates fall in the west.
Where is the Next Housing Correction
Homes in some pandemic boom towns are significantly overvalued, with Reventure CEO Nick Gerli predicting a steep decline in the Southern real estate market. Gerli estimates that home prices in the South could drop by 20% over the next few years due to a surge in new housing inventory and waning demand.
Florida and Texas, in particular, are seeing significant price declines, with seven of the 10 cities experiencing the largest number of price drops. The region's housing market bears similarities to previous bubbles, with home prices having surged 50%-70% since the pandemic, while incomes have only risen 10%-20%.
This imbalance could lead to a substantial correction, especially if the economy enters a recession or unemployment rates rise. Despite the current affordability crisis, Gerli believes that patient homebuyers could find good opportunities in the coming years as the market adjusts.
Finsum: It’s important to monitor these changes in housing, but keep in mind SFR poses a completely different problem set and these areas could still flourish.
New Model Portfolios Deepen Client Relations
Leading the industry, WisdomTree, Inc. launched its Portfolio Solutions program to better support RIAs and wealth management firms. This program aims to help advisory firms customize client portfolios and embrace model portfolios, offering significant time efficiencies.
The platform offers a range of services, including examining current model portfolios, stress-testing assets, and providing CIO-managed model portfolios. Additionally, advisors can collaborate with WisdomTree’s team for trading, rebalancing, and tax optimization tasks.
The program helps advisors allocate more time to client-facing activities and improve their overall service. WisdomTree has also expanded its Portfolio Solutions team with the strategic hire of Samuel Rines, a Macro Strategist, to provide geopolitically risk-aware portfolios.
Finsum: These technologies allow advisors to deepen their relationships with clients by freeing up time and understanding interests.
Adjusting Portfolio For H2
As market volatility persists, major equity indexes hit new highs, prompting investors to shift from AI and technology stocks to small-caps. The Dow Jones rose 700 points on July 16, achieving a record high, while the S&P 500 followed suit, driven by interest rate cut hopes.
Natixis Investment Managers advises using selective, active strategies and high-conviction portfolio construction to navigate market peaks. They recommend not waiting for stock declines, as equity markets historically increase 70% of the time.
For an offensive strategy, focus on growth-oriented, small, and midcap stocks. Active management and model portfolios can help manage risks and optimize tax implications.
Finsum: Prepping your portfolio for the fall election is more crucial than ever.