Eq: Total Market

Omicron is sweeping the U.S. and once again threatening to cripple the economy, already major airlines are canceling flights and potential Christmas plans. This makes moderate Dems walkout on the Build Back Better even more critical as the country could desperately be in need of stimulus at the moment. This caused Goldman to cut its GDP growth by 1% annualized in Q1 2022 and a half a percent in Q2. CPI rose at a 39-year record in November, which could make the possibility of a big BBB bill even less likely as price pressures deter policy makers. Goldman still sees the possibility that congress will aid a bit with the new omicron surging.


FINSUM: It’s tough to justify another trillion-dollar stimulus package with roaring inflation, and it might be futile with the Fed pumping the breaks; lookout for stagflation!

Some trends were definitely starting to take hold in 2021, but those are going to continue to flourish in 2022. The first of which is an active fund take over, as it appears active fund starts will outpace passive funds and see huge inflows on top of it. The next biggest trend will be more RIA’s rolling up their proprietary model portfolios into ETF launches. These model-based funds are the best way for professionals to package their expertise and deliver it effectively to clients. A number of recent SEC policies make it easier for a variety of ETF launches to happen this year so expect this explosion to continue in 2022.


FINSUM: It makes sense that model portfolios will explode, firms can be more transparent about their areas of expertise by delivering them in fund form explicitly.

A new generation of technology is at our fingertips, and whether that's Netflix or Amazon people want the technology to service them now more than ever. Index tracking funds are really the cable box in the modern world and investors want a more tailored experience that only custom indexing can offer. Partners at Fidelity are saying that a hyper-customized multi asset portfolio is really the future, and given how popular trends like ESG are becoming, advisors are really needing better tools to attract and maintain clientele. Custom indexing can hit a multitude of demands investors want and also drive home a better fee for their workload as compared to traditional ETFs.


FINSUM: The world of a custom index, where stocks can be added and dropped for any reason is here, and it's probably on a mobile platform soon.

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