Wealthy investors are hitting a pandemic low in terms of optimism around the market as concerns flare up surrounding volatility. The latest survey by UBS shows that inflation and geopolitics are weighing down investor sentiment regarding optimism. The majority of investors are concerned most regarding inflation and are shifting into cash holdings and the inflation concerns have them weary about where to invest. Under a third said they would increase market holdings if there was a 10% blow-off. Still, investors show a desire to invest in long-term assets such as renewables and smart mobility.

Finsum: Keeping a long eye is a smart play right now but older investors are in a difficult position regarding the market. 

According to a Bank of America analyst, the cybersecurity industry is in the midst of a spending slowdown. The slowdown has mostly affected small and mid-sized businesses. While large enterprises haven’t shown signs of a slowdown just yet, this might change as larger firms may need to reduce budgets, likely starting next year. While the demand for cybersecurity solutions has been surging as war rages on in Ukraine, uncertainties from the global economic slowdown are starting to have an effect. Distributors are expected to see slowdowns in Identity and Access Management (IAM) and Virtual Machine (VM), while areas such as endpoint solutions, cloud security, and privileged access management are seen as more resilient. Companies such as Microsoft with its bundle offerings, and SentinelOne and CrowdStrike that provide endpoint security should benefit, at least initially. Cloud security providers Zscaler and Palo Alto Networks are expected to benefit as well.

Finsum: Uncertainties arising from the global economic slowdown have triggered a slowdown in spending on some cybersecurity solutions.

Active bond giant Pimco saw clients pull their money for a second straight quarter amid the global bond selloff. The firm saw outflows of $29.4 billion during the second quarter as investors fled bonds due to Fed rate hikes triggered by sky-high inflation. High-interest rates make bonds less attractive. This was after the California-based company saw $14.3 billion drawn by investors in the first quarter. Analysts at Citigroup noted that the outflows during the second quarter were much higher than expected. The fund company has been trying to navigate a less than ideal fixed income environment where high levels of inflation not seen in a generation are eroding the value of their bond holdings. Overall, Pimco’s parent company, Allianz, saw its third-party assets under management fall to $1.83 billion.

Finsum: Amid the global bond selloff, active bond manager PIMCO saw massive outflows for the second straight quarter.

According to a July survey conducted by VettaFi and State Street Global Advisors, high yield credit strategies were the bond style most appealing for advisors to add to client portfolios. With treasury yields narrowing and the Federal Reserve aggressively hiking rates to tackle inflation, investors are looking to take on more credit risk to receive higher yields. This is evident as three top high yield corporate bond ETFs, that collectively manage $44 billion, pulled in $4.7 billion in flows during July. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) brought $1.9 billion in new assets during July, while the SPDR Bloomberg High Yield Bond ETF (JNK) and the iShares Broad USD High Yield Corporate Bond ETF (USHY) brought in $1.7 billion and $1.1 billion, respectively. It appears that investors currently prefer high yield bond ETFs with higher risk profiles to funds that offer more protection against rising rates.

Finsum: Due to the Fed’s rising rates policy and narrowing yields, investors flocked to high-yield bond ETFs last month. 

First Republic Bank’s wealth management unit added two wealth management teams to its ranks last week. The firm announced on Wednesday that a Merrill Lynch Private Wealth Management team that manages over $1 billion in assets left the wirehouse after 15 years to join First Republic in Palo Alto. Theresa Rutledge and Anthony Custodio, the lead advisors, each produce $4.3 million in annual revenue. Both have a $10 million account minimum. Then on Friday, the Silicon Valley bank announced that it lured another top producer to the bank, this time from J.P. Morgan Advisors. David J. Loeb generates $1.8 million in annual revenue and manages $250 million in assets. The advisor is located in Palm Beach Gardens, Florida, where First Republic is looking to expand. The company, which has over 200 brokers, has hired around five teams this year, which puts it on pace with its annual average of 10.

Finsum: First Republic Bank continues its advisor recruitment program by luring two wealth management teams to its ranks last week. 

Tech stocks are suffering and pushing the Hong Kong broad market index lower early this week. Companies like Alibaba and JD.com were driving this slump. Overall, economic data has been positive for China though. The latest report showed that dollar-based exports grew by almost 20% in July. The region as a whole is experiencing diverging patterns in equity performance as South Korea and China excluding Hong Kong both grew. Still with currency risk higher than usual as a direct result of Fed tightening and higher inflation emerging market investors are having a difficult time finding North in the current environment.

Finsum: If covid is starting to slow as a result of the climate it could be great for countries relying on trade. 

Dems are including a 1% tax on share buybacks in Biden’s climate and tax bill which is being pitched as an inflation bill. The tax was included to get Arizona Senator Krysten Sinema on board with the legislation. Most analysts say this will raise tensions with Wallstreet as investors will be apprehensive about the impact immediately and what it opens the door to moving forward. Many companies have recently engaged in massive buybacks using the excess profits to reinvest in their own companies. Experts say this could generate a lot of revenue, more than the carried interest which is expected to bring in $14 billion.

Finsum: Buy back boogeyman at it again. This legislation stops companies from doing the most responsible thing they can with excess cash.

It might be easy to see why some opt for active fixed income strategies.

After all, they boast a host of advantages, including the paring down interest rate sensitivity and control duration risk, according to catalyst-insights.com.

Echoed npifund.com: Risk mitigation is the real advantage of active fixed-income management. Unlike a passive strategy, the active fixed route dispenses the opportunity set of investments beyond the fixed income benchmark index. Not only that, managers can hit or release the button on risk. 

Additionally, with active funds, careful security selection may culminate in careful liquidity and quality analysis, according to etfdb.com. Rather than being on the hook for thousands of bonds to generate a carbon copy and index’s holdings, when it comes to security selection, actives pickers can be more discerning.

A new paper entitled ‘Active Fixed Income Perspectives Q3 2022: Bonds are back,’ the potential for active finds to uncover solid returns in the bond markets – even as default rates escalate and central banks try to leave things intact, the fixed income team at investment giant Vanguard’s fixed income team, fronted by Sara Devereux, has analyzed the potential for active funds to find solid returns in the bond markets.

Looking for exposure to a gaggle of securities? With fixed income ETFs, you’ve scored, according to etf.com.

From speculative emerging market debt to “top notch” U.S. government debt, these ETFs blanket the corners of the market, the site continued.

Homing in on this ETF works much like tabbing any other asset class does; it starts with nailing down your targeted exposure or the kinds of bonds that float your boat. From there, it’s a matter of contemplating the credit ratings and interest rate risk the underlying securities of the ETF.

Sovereign, corporate, municipals and broad market are, broadly speaking, the four categories into which ETF’s fall.

Fixed income investments are leveraged by many investors to balance risk and to generate regular income, according to finance.yahoo.com.

Almost like a smorgasbord, while some investors opt for individual bonds, others pluck down their money on bond mutual funds, the site continued. Then there’s a fixed-income ETF, which keys on a less expensive diversified pool of funds. 

There’s no backburner when it comes to ETFs; they immediately can be purchased or unloaded. That way, you can time effectively manage your portfolio, according to the site. 

Sure, money makes the world go round….and round, but when it comes to financial advisors changing firms, while cash, of course, speaks, it’s not alone, according to smartasset.com.

They also take into account the way in which their financial well being and personal wealth will be impacted by a transaction.

While it always should land high on the list, the financial recruiting package is among a number of factors it’s incumbent upon advisors to study, the site continued. The package also is impacted by elements such as true payouts, hanging onto clients and office and staff. 

That said, according to average annual earnings, the bulk of financial advisors fall in the 90th percentile of U.S. workers, reported smartasset.

The bottom line: last year, the average advisors raked in around $120,000, according to Bureau of Labor Statistics data. Conversely, the same year, the average joe brought in $58,300.

Last year, Barron’s reported that the market for financial advisors had been stoked due partly to new rivals entering the mix and a spark in the competition among wealth managers,

Foremost -- besides their wallet -- advisors eyeing moving to new firms are strongly intent on gaining “freedom and control,” said Mindy Diamond, the founder and CEO of Diamond Consultants, according to thinkadvisor.co.