Displaying items by tag: regulation

Tuesday, 13 November 2018 09:23

The Fiduciary Rule is a Sleeping Giant

(New York)

The whole Fiduciary rule saga seemed to be over earlier this year, but now that couldn’t be further from reality. While the DOL seemed to gracefully fade from the limelight in March, the truth is that the rule is a “sleeping giant’ according to one industry lawyer. That giant has now woken up, as the DOL is set to release an updated version of its rule in September of next year. The big question is how the SEC rule will be affected, and whether the rules will work in tandem. In either case, advisors and brokers seem likely to see much more regulation within a year or so.


FINSUM: The other big question is whether the political changes in Washington mean the SEC rule might be scuttled in some way. We sense some big changes happening.

Published in Wealth Management
Tuesday, 02 October 2018 09:45

Amazon Makes a Big Move on Wages

(Seattle)

Amazon has just taken a big step to improve the welfare of its enormous mass of workers. The company has raised the minimum wage across all its businesses to $15 per hour. The wage will apply to the company’s 250,000 employees and 100,000 holiday workers and will begin on November 1st. Amazon also says that it will now push for an increase to the federal minimum wage of $7.25 per hour.


FINSUM: This is a good move for Amazon’s workers, but it might be even better for Amazon’s reputation. The company has recently come under scrutiny for its labor and monopolistic practices, and this is one way to offset those concerns.

Published in Eq: Tech
Tuesday, 21 August 2018 09:12

Tech Companies Should Expect Regulation

(San Francisco)

Talk about comments coming right from the source. Microsoft CEO Satya Nadella went on the record this week telling the market that tech companies should “expect” regulation. Nadella walked through current areas of tech and regulations, like facial recognition or GDPR, and explained their implications for the industry. He said that “As tech becomes more and more pervasive, I think for all of us in the tech industry we should expect—whether it’s on privacy or on cybersecurity or even ethics or AI—government and regulatory bodies to take interest in it”.


FINSUM: We think the writing is on the wall that tech is going to face some form of regulation, especially given that the Trump administration is rather hard on the sector. The question is when, not if.

Published in Eq: Tech
Friday, 01 June 2018 09:18

Some Big Equity Market Dangers Loom

(New York)

As if higher rates and Europe weren’t enough, there are plenty of other dangers currently weighing on the stock market. The two big ones are a potential trade war—sparked by Trump’s proposed tariffs on metals and beyond—which could lead to a bitter battle between the US and Europe or the US and China. The other big risk is FAANG, or big tech, regulation. Tech stocks have become such a stalwart of the market, that regulations reigning them in could prompt major losses.


FINSUM: The market does appear ripe for some regulation of tech stocks. GDPR just passed in Europe and the political climate seems ready for some regulation, but we believe it is still more likely that nothing happens.

Published in Eq: Large Cap
Wednesday, 18 April 2018 08:01

Why Tech is Still the Top Sector

(San Francisco)

Where should investors put their money in the stock market? That has been a very tough question lately, as everyone’s favorite darling, tech, has had a rough several weeks, and the outlook still seems dicey. However, Credit Suisse says that despite its woes, tech is still the best sector to be in at the moment. The reason why? Fundamentals. Tech has great underlying business momentum, with strong revenue, great growth, and strong free-cash-flow valuations.


FINSUM: We think regulation of tech is still some distance away, which mean it should have a good medium term runway to keep outperforming. All of that means the lower valuations right now could prove a good opportunity.

Published in Eq: Large Cap
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