Value has outperformed the market tremendously for a portion of this year and value managers must  be starting to get a little of that old feeling back...see the full story on our partner's site

China has banked an inordinate amount of U.S. dollars in the last couple of months as trade surpluses and inflows flow into its bond market. The Chinese trade surplus through September was about $100 billion larger than its 5 year average preceding the pandemic. This current account will provide a buffer against any foreign debt problems regardless of any economic situations China faces this year. The current account surplus could allow China to deleverage its corporate debt market, particularly in real estate, which has faced a difficult bond market. China’s dollar holdings have allowed the yuan to appreciate like other emerging market currencies, such as in Russia and Columbia. Holding greenbacks is a bet on a growing U.S. Economy, and could help China hedge their slower growth.

FINSUM: The large current surplus could mean myriad things for China, but it could also just be another symptom of the global economic disruption due to Covid-19.

Job growth had been performing below expectations in recent months, but the Recent BLS Report showed the Economy has bounced back with 531,000 jobs. Perhaps even more significant is the gender breakdown of these new positions: 57% of the new jobs were created for women. While the report is a positive, it is not all good news. Many of the new jobs created were for retail and hospitality, which have lower wages and don’t offer as many benefits. Still, wages are on the rise in this sector of the economy given the domestic labor glut. Finally, it will take time to restore the labor market to its pre-pandemic numbers. In fact, at this rate it will take another 8 months to recoup the job losses.

FINSUM: Minimizing labor disparities is a sign the economy is healing, but it's also a means for better economic growth in and of itself.

The Trump administration put rules in place which forbid employers from considering social or environmental impact when it came to fund selection from enrolling in retirement plans. However, the Biden admin is turning a new leaf on this front as they have proposed a rule which will ease the decision-making process for employers if they want to add ESG funds to their employees’ retirement plans. This is yet another proposal from the Biden admin that favors renewables and green corporations in the country's transition to net zero emissions. Part of the response is a boost in demand as investors have overwhelming interest in ESG in their portfolios. It isn’t a no brainer that ESG should be a part of a retirement portfolio, as it does prepare for downside risk, but it may not outperform.

FINSUM: The U.S. 401(k) savings machine is a huge pool of investment, and institutional savings could be a major boost to ESG demand.

The COVID-19 crisis has kept our industry on its toes, pushing firms and clients to find new ways to communicate and collaborate in spite of new difficulties. If anything, it has underscored how important it is to use technology to your benefit.

This case study covers how advisors like Mike McCann have used technology to automate routine tasks, stay connected with clients and colleagues, and ensure they provide responsive service for every client. His firm, Perspective Financial Services, has used technology to power growth in the face of these challenges – growth for both their clients and their firm.

In reading Mike’s story and his advice, you too can learn to apply these technology tools to your own practice and be better prepared to take on the unexpected.

We’ll cover powerful and practical tech insights and guidance, including:
• Ways technology can help you anticipate client needs and deepen relationships
• How technology can make firms more agile and secure
• Advice based on real-world success

Disclosures:

Schwab Advisor Services™ serves independent investment advisors and includes the custody, trading, and support services of Charles Schwab & Co., Inc. (Schwab), member SIPC. Independent investment advisors are not owned by, affiliated with, or supervised by Schwab.

This is a sponsored feature developed by Schwab and supported by FINSUM.

FINSUM is not affiliated with The Charles Schwab Corporation. Any mention of third-party firms or individuals is not and should not be construed as a recommendation, endorsement, or sponsorship by Schwab.

FINSUM will share your information with Sponsor, Charles Schwab & Co., Inc. Schwab may use it to contact you and to send you additional insights from Schwab Advisor Services™. Read about privacy at Schwab at www.schwab.com/privacy.

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