Displaying items by tag: market

Location? Location? Location?

Actually, it’s more a matter of opportunity -- at least in the case of market conditions and active fixed income, according to wellington.com.

Said the authors: In our judgement, having an opportunistic element to asset allocation implementation will be key to exploiting the regional imbalances that are likely to arise later this year and beyond,” stated the authors, who emphasized the views were theirs at the time of writing and that other teams might view the situation differently and make different investment decisions. They continued that by homing in on strategies evolving around global investment -- with flexible regional allocations – to pinpoint opportunities like early and teak heir geographic weights in light of fresh information, investors can cast their chips on the skills and depth of active portfolio managers.

Speaking of opportunity, inflation can be exactly that for investors in active fixed income, according to us/allianzgi.com.

While escalating price tags for goods and services are a blaring red flag for those who pluck down cash in conventional government bonds, when it comes to whipping up returns in the midst of climbing or receding inflation, let’s just say active managers have their ways.

You know what they say about timing? Well, plenty, probably, but among them is now an idyllic time – the best in years, in fact -- for financial advisors to bolt one firm for another, according to Mindy Diamond, founder and CEO of Diamond Consultants, according to diamond-consultants.com. It originally appeared on thinkadvisor.com.

So, why now, you might ask? Diamond says quality advisors are receiving transition packages “at real high water marks.” She added that it’s a “real sellers market” where advisors are “more likely [to] find [their] version of utopia versus five or 10 years ago.”

Okay, that can be persuasive.

Now, compensation aside, financial advisors with an eye making a change also are keen on “freedom and control,” said Diamond. Autonomy, she continued, in squarely in their wheelhouse.”

And there’s more, she noted. A burgeoning number of options are on the plate for advisors eyeing parting ways with large firms. Among them: aligning with “boutiques” that offer freedom and control, more opportunities for those with entrepreneurism on their radar to start RIAs of their own

That said, tempted though you might be, before delver deeper into a potential job switch, consider a few things, advises vantageinpact.com.

1. Thoroughly Review the Expense Structure Details
2. Upfront Bonus (Loan) - Proceed with Caution!
3. Develop a Comprehensive Proforma to Compare and Contrast Firms

Former President of the NY Federal Reserve, the most powerful branch in the system, said that the Fed is going to have to inflict losses on bond and equity investors if it wants to manage inflation.  Dudley who served for almost a decade at the Fed, said they are also navigating other issues like labor market tightness and supply-chain disruptions which will make it difficult to navigate. This view however stands in stark contrast to the ‘Fed put’ where investors rely on the Fed to not tighten monetary policy too quickly in order to maintain stable equity prices. 

Finsum: Higher rate hikes are definitely a possibility, and even dovish Presidents are looking like hawks.