California’s high-yield municipal bonds, intended to fund housing for essential workers like police officers and teachers, are under financial stress. The state issued between $8 billion and $10 billion in speculative municipal bonds to convert existing apartments into affordable housing for middle-income families, but these projects are now struggling due to rising interest rates and declining occupancy.

 Local agencies often borrowed beyond the purchase price, assuming high occupancy would cover expenses, but that assumption has proven risky as the economic landscape shifts. The bonds, many of which were sold when interest rates were historically low, now face significant challenges as financial conditions tighten. 

Experts are increasingly doubtful about the sustainability of this workforce-housing model, which has not yet been tested across different economic cycles.

Finsum: We are in a time for major changes to the muni market as interest rates fluctuate. 

Morgan Stanley's CEO Ted Pick announced that artificial intelligence could potentially save the bank's financial advisers 10 to 15 hours per week by automating tasks such as transcribing and entering notes from client meetings. This AI tool is expected to significantly boost adviser productivity and help tailor investment strategies to better meet the needs of wealthy clients. 

Pick also predicted that high interest rates in the U.S. will continue, aligning with views from leaders at JPMorgan Chase and Goldman Sachs, and noted that this environment could benefit the bank's trading and market-making activities. 

Morgan Stanley plans to expand its lending to high-net-worth clients through more advanced financial products as deposits increase. Pick emphasized the bank’s commitment to maintaining its dividend while suggesting that stock buybacks would be influenced by market conditions. 

Finsum: By using AI to boost productivity this extra time could be devoted to deepening client relationships or new client adoption. 

Separately Managed Accounts (SMAs) offer notable advantages for institutional investors looking to invest in cryptocurrencies compared to ETFs. While ETFs have become popular among new crypto investors, SMAs provide direct ownership of assets, allowing for greater customization of portfolios and tailored risk management. 

This direct control also facilitates more effective tax strategies and access to a broader range of digital assets beyond just Bitcoin or Ether. Unlike ETFs, which are passive, SMAs benefit from active management, enabling investors to adjust their portfolios in response to market changes and potentially achieve higher returns. 

Additionally, SMAs operate in the 24/7 crypto market, avoiding the limitations of traditional market hours and minimizing the risk of price gaps. For high-net-worth individuals and institutions, the flexibility, personalized approach, and potential for outperformance make SMAs an increasingly appealing option over ETFs.

Finsum: Being able to have access to a cryptocurrency 24/7 is a critical advantage because their markets react overnight with great frequency. 

This year, the focus on managing downside risk in portfolios has become crucial, particularly with the looming presidential election, anticipated Federal Reserve rate cuts, and global geopolitical challenges. 

Buffer ETFs have gained traction as a solution, offering a combination of market participation and capital preservation in a straightforward, single-ticker format. These ETFs cater to varying time horizons, allowing investors to tailor their protection strategies accordingly. As more product providers enter the Buffer ETF space, it's essential to conduct thorough research, as the specific design and strategy of each ETF can significantly impact outcomes. 

Innovator ETFs, a pioneer in this category, recently introduced Managed Floor ETFs, which differ from defined outcome ETFs by offering ongoing protection without limiting the potential for market gains. These newer ETFs provide greater flexibility, making them suitable for continuous integration into portfolios rather than being tied to specific time frames like some other strategies.

Finsum: The fees can be a critical issue with these products so manage to understand exactly how the product will pay off to take full advantage of the strategies. 

This year, global commodity prices have been highly unstable, maintaining generally high levels. Futures for orange juice and cocoa have reached unprecedented peaks in the early months, while crude oil prices have been influenced by events in the Middle East. Gold continues to climb, though base metals such as iron ore have seen substantial declines.

Sabrin Chowdhury, a lead commodities analyst at BMI, observed that the market has been particularly sensitive to changing sentiments, quickly reacting to both positive and negative news. The S&P GSCI index, a measure of overall commodity market performance, surged by 12% in April but has since moderated to a 2.18% increase for the year.

Data from FactSet indicates that certain soft commodities, including cocoa, eggs, orange juice, rubber, and coffee, have seen significant price increases. Analysts suggest that adverse weather in key production areas is a major factor behind these gains.

Finsum: We’re slightly bullish on energy commodities moving into the fall as interest rates fall and economic demand picks up steam.