Eq: Total Market

A recent survey found that investors are concerned about their retirement prospects and it’s easy to understand why. A combination of volatility, inflation, and recessionary fears is driving investors to check their retirement balances multiple times a week. Clients are certainly also voicing their concerns to their advisors. With both the equity and the fixed income markets seeing steep declines, there haven't been many places to hide unless an advisor has been employing some type of Relative Strength strategy. By focusing on Relative Strength, also known as momentum, an advisor can remove emotion and subjectivity from their investment process and potentially see higher returns for their clients even in market environments such as this.

For over 30 years, Nasdaq Dorsey Wright has created many innovative technical indicators based on momentum using Point and Figure charting. One of the most popular is the “Technical Attribute” rating. Their research has shown that a high attribute portfolio, which includes ratings of 3-5, has a strong propensity to outperform, with the largest outperformance reserved for the highest ratings. The technical attribute ratings are composed of five distinct Point and Figure chart attributes, including four relative attributes (two vs. the market and two vs. the sector), and one absolute attribute (trend). The absolute attribute is typically useful in limiting the downside, as a purely relative approach can leave a client exposed when everything is moving down at the same time. In a year, when only one sector (Energy) has a positive year-to-date price return, employing the “Technical Attribute” rating can help advisors make their clients feel more comfortable about their retirement prospects. 

Learn more

Self-directed everyday investors (as well as advisors) are getting access to some pretty powerful tools. Listen to Jack Swift discuss how TIFIN uses AI to identify signals to improve the whole experience. 

You’ve heard of breakout seasons. Professional athletes have an affinity for them – especially as they’re about to become free agents.

Well, they just might want to scootch over. The FINRA 2022 Annual Conference session, “Regulation Best Interest: Lessons Learned” ranked as one of the most highly attended breakouts of the three-day conference, according to questce.com.

Someone; sign ‘em up.

Okay, then, in the world of putting Reg Bi into place, what was learned?

FINRA said it would soon review – and deeper – Reg Bi and Form CRS. In particular, they will put a magnifying glass on Care Obligation and the compliance among firms.

Meantime, some things don’t change.

Next year, Richard Best, head of the Division of Exams, Reg Bi and the Advisers Act fiduciary duty “remains a top priority” for Securities and Exchange Commission exams in an address to the SEC’s National Compliance Seminar, reported thinkadvisor.com.

Speaking to compliance officers, Best said: The exam division is “focused on how broker-dealers and investment advisors satisfy their obligations under the Reg BI and the Advisers Act fiduciary standard to act in the best interest of retail investors and not to place their own interests ahead of retail investors’ interest."

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