Retail and direct indexing, it seems, forge quite the cozy twosome.

Fueled by clients with assets of between $2 million and $3 million, by 2026, direct indexing will represent one third of retail separate accounts, according to the second annual white paper commissioned by Parametric Portfolio Associates, released by Cerulli Associates, according to financeyahoo.com. Financial advisors were the target.

Assets in directing indexing where projected to expand at a five year CAGR of 12.3% to hit $825 million by 2026, according to the report.

There’s a “gigantic swath of the market” serving these clients who could benefit from such a product due to their tax needs,” said Tom O’Shea, research director and one of the report’s authors. He added that. compared to other investment vehicles like separate accounts and ETFs, the projected rate’s “aggressive.” 

While financial advisors and their clients might not be exactly flocking to direct indexing, the financial services industry’s bent on persuading the financial planning industry that almost every investor can receive a boost from direct indexing, according to investmentnews.com.

Taking, um, stock, of your portfolio holdings?

Hold on with both paws: with investors updating their economic outcome probabilities, volatility’s the byword for next year in the S&P 500, UBS Global Wealth Management recently said, according to markets.businessinsider.com.

"[Expect] more volatility and large market swings exacerbated by positioning as investors update their economic outcome probabilities in reaction to each new data point and Fed utterance," Jason Draho, head of Asset Allocation Americas at UBS Global Wealth Management, said in a note.

He noted that the S&P’s been marked this year by a "pendulum-like return pattern.” He added “large month-to-month swings could continue well into next year before the economy's eventual destination becomes clear."  

And if you thought the oil market’s were beyond the sticky fingers of volatility: ha!

As in think again.

After heading north on the tailwinds of a post lockdown spark in demand, crude climbed to an almost unprecedented high in the aftermath of the Ukraine invasion, according to currenciesdirect.com. Then, in light of the tumultuous global economy, drooped.

You know those weekly company zoom meetings? Well, over the next decade, a number of today’s financial advisors will be no shows. What, were they recipients of all inclusive get out of jail cards?

Um, nope. Instead, the bulk of them are in the waning days of their careers and over 100,000 will call it a day over the next decade, according to advisorperspectives.com.

Thing is, only 27% of advisors had a succession plan -- or a formal preparations to transition their practice of an kind – according to findings from a 2018 survey by the Financial Planning Association.

That said, succession planning’s a big decision for financial advisors to keep in mind and generate a plan for, according to figmarketing.com. That way, of course, the brand and your clients will say make hay in the aftermath of your departure.

When it comes to a succession plan, toss the cookie cutter out the nearest window. There’s a host of structures and steps available, of course, to design and plan that will accommodate your specific needs.

According to a new report by Edelman Financial Engines, inflation, recessionary fears, and geopolitical uncertainty are undermining financial confidence. The report found that just 23% of more than 2,000 adults that were polled earlier this fall felt “very comfortable” about their finances and only 12% consider themselves wealthy. Even high-net-worth investors are concerned about their finances. Only 44% of millionaires feel “very comfortable” about their finances, with only 29% feeling wealthy. Jason Van de Loo, head of wealth planning and marketing at Edelman Financial Engines, had this to say about the results, “Becoming a millionaire was always the pinnacle of financial success. But at a time when inflation and stress levels are up, and markets and portfolios are down, very few Americans actually feel wealthy.” Edelman Financial Engines also found that most adults feel less financially secure than they would have hoped at this stage in their life. The results match similar responses from other surveys. A separate report by Bank of America found that 71% of workers feel their pay isn’t keeping up with the rising cost of living which brings the number of people who feel financially secure to a five-year low.

Finsum:A poll conducted by Edelman Financial Engines revealed that Americans are less confident about their finances due to inflation and recessionary concerns.

The $4 trillion municipal debt market is expected to have a “bounce back year” in 2023, according to Charles Schwab’s Cooper Howard. The director and fixed-income strategist for the Schwab Center for Financial Research said in a recent Bloomberg TV interview that “A slower pace of interest-rate hikes, attractive yields, and relatively healthy state and local government finances should lure investors back after demand plunged this year.” He also stated “Credit quality is very high in the municipal bond market. State and local revenues have surged to record-level highs driven by the economic recovery. Given the rise in yields, it is more attractive for retail investors, so there will be more demand coming into the market.” Munis had fallen out of favor due to a combination of inflation and recessionary concerns. According to data compiled by Bloomberg, muni sales are down nearly 19% this year at about $351 billion. However, 10-year municipal yields have more than doubled since the start of the year. While recessionary fears may continue, the municipal market won’t be as affected due to healthy credit ratings. Howard expects municipal debt tied to public transportation to lead the rebound as the airline industry is bouncing back.

Finsum:Schwab strategist Cooper Howard predicts a bounce-back year for munis due to slow rate hikes, attractive yields, and healthy credit in state and local governments.