Eq: Consumer (5)
An informed consumer is an…. Yep; you get the idea
That brings us to direct indexing, which yields a host of benefits for investors, according to avaloninvest.com. By toting a firm grasp of directing indexing’s concept, what can investors do? Why, make informed decisions about their portfolios and the most of their returns, that’s what.
Meantime, preferences and goals are always nice and with direct indexing, investors can customize their investments based on both of those elements. Not only that, investors can leverage direct indexing to generate exposure to specific companies within an index. That can come in especially handy among investors who believe deeply in specific companies or sectors.
Investors are opting more and more for direct indexing to spark customized portfolios, according to etftrends.com.
Delving a bit deeper, with direct indexing accounts, such as, for example, Vanguard Personalized Indexing, which offers screens and tilts. They allow advisors to customize the portfolios of their clients, not to mention positions advisors – on the behalf of their clients -- to request custom options.
“You can help clients express environmental, social, and governance (ESG) or socially responsible investing (SRI) preferences,” according to Vanguard. “You can tilt their portfolios toward stocks with certain characteristics like momentum or value, known as factors.”
A slam dunk of a fixed income stream can sound pretty appetizing to any consumer -- including retirees. Consequently, guaranteed rate annuities can be just the ticket for them, according to annuityexpertadvice.com.
That said, before John Hancocking the dotted line, it’s important to familiarize yourself with the contract terms. After all, you want to circumvent locking into an investment that yields less than satisfactory returns, the site continued.
The sales of multi year guaranteed annuities have surged this year, according to lifehealth.com. First quarter sales chimed in at $14.5 billion, a hike of 30.1% compared to the quarter before.
According to industry surveys, seeing the money well run dry’s the top fear among most retirees, stated winkintel.com.
“Annuities play a critical role as a safe money alternative for so many seniors, especially in our current environment of market volatility,” said Chris Conroy, IAMS’ executive vice president and general counsel.
No, it seems the investment industry isn’t singularly focused on, well, the old bank account. Turns out that over the past few years, environmental, social, and governance or ESGs infiltrated and lassoed the conscious of the country – including the investment landscape, according to loma.org.
Of the $51.4 trillion assets professionally managed in the U.S. as 2019 wound down, $17.1 trillion represented sustainable investing assets, estimated The Forum for Sustainable and Responsible investment.
ESG 1.0 was marked by a top down approach to the implementation of ESG policies, according to forbes.com. Those policies don’t include a method by which to quantifiably gauge their effect. Those companies boasting a desire to satisfy consumer interests or taking a run at reversing public perception could forward their initiatives stemming from ESG with few methods available through which to fact check.
Investors see that one of the foremost challenges of the decade encompasses resolving the climate crisis, the site continued. From 2020 to 2021, the ESG experienced a doubling in funds – a trend expected to extend into the future. ESG assets will tip $30 trillion by 203, according to predictions in a report from Broadridge Financial Solutions.
(New York)
The best US stock sector of 2018 is also now the market’s most risky. Consumer discretionary stocks have been on a run this year (as they often do when rates are rising), but that may be about to change. According to Morgan Stanley, consumer discretionary, which is composed of retail, apparel companies, and automakers, may be set for a big fall. “An early-cycle sector trading at peak valuations in a late-cycle environment”, is the way Morgan Stanley describes the sector. The average P/E ratio for consumer discretionary stocks is 35% above the S&P 500’s average.
FINSUM: Amazon is disproportionately responsible for the consumer discretionary’s gains this year, but the other stocks in the sector could be good shorting opportunities.
(Chicago)
McDonalds is taking one of its boldest menu steps in years. The company has announced that it will eliminate all artificial ingredients from its burgers. Ingredients such as calcium propionate and sodium benzoate will disappear from the Quarter Pounder and Big Mac as McDonalds tries to project a more healthy image. The move follows efforts earlier this year to use fresh beef and natural beta carotene in its burgers. Since the changes, many menu items have seen sales increases.
FINSUM: The healthy food movement has reached a significant mass and we think these changes were ultimately a must for the company.