Eq: Total Market

The predominant sentiment in financial markets is that active funds have an edge during volatile periods because picks are more apparent and therefore easier to execute. However, according to the Euro Securities and Market Authority, active funds didn’t outperform passive funds during the critical stressed market conditions from February 19th to June 30th, 2020. This full cycle in financial markets didn’t give active funds an advantage and actually underperformed by 6.6% annualized in that period. This research backs up previous reports by morningstar that active funds didn’t outperform during high volatility Covid-19.

FinsumCovid-19’s cycle was the K-shaped recovery Economists dream of, so this isn’t the nail in the coffin for active management.


There have been huge sectoral pains for tech, bio-tech, emerging market, and growth stocks in the last couple of weeks, but JPMorgan says it's time to turn bullish on these beta positions. Analyst Kolanovic said that these equity sectors are about to benefit because many of the geopolitical risk and macro pressures are about to ease. JPMorgan’s analyst believes that there will be little inflation and the US will avoid a recession. Biotech has been beat down since last August when the Nasdaq Biotech Index peaked; it is now at 75% of its previous high.

Finsum: The Fed projections could be bad for tech stocks as higher interest rates decrease the relative value of techs profits.

Wells Fargo has employed a number of strategies in both advisor recruiting and retention but is still losing teams. Recently Stratos Wealth Holdings added Jason Howerd, Shane Kunz, and Chad Horne who oversaw $1billion at Wells before their move. It was the additional resources and financial software that were key drivers in their decision-making process. LPL’s affiliate Gladstone Wealth Partners also added nearly a half dozen advisors from Wells, with well over $400 million in AUM. Overall Gladstone has seen strong growth already in 2022 adding 20 advisors in the first two months.

FINSUM: It appears technology and tools are a growing part of the decisions advisors are considering when transitioning between financial firms.

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