Companies Newfound Research and Simplify Asset management are partnering on a selection of new model portfolios that are giving investors more options on their equity holdings. The structured alpha portfolios are designed to target different growth offerings and provide different risk exposure. With the four portfolios coming in 20/80, 40/60, 60/40, and 80/20 equity allocations investors will have exposure to equity, rate, and volatility markets to mitigate financial risk. Fund advisors are trying to get outperformance from strategic capital efficiency rather than trying to pick winning stocks at the right time.

FINSUM: Even basic equity/bond allocation strategies in model portfolios are a good way for advisors to drill down the risk in a portfolio.

Many individuals overlook the value of a health savings account as they are preparing for retirement, particularly as healthcare costs are rising rapidly. High deductible plans have a number of tax advantages because they grow tax-free and can be used for out-of-pocket expenses well into retirement. Additionally, these HSA accounts come with many of the options and more than traditional retirement accounts and are easily moveable. Finally, these accounts have no rollover cap if funds move to an additional year.

FINSUM: HSAs are a great retirement vehicle, however, chronic investors with chronic illness should avoid high deductible plans that HSAs benefit.

Covid has forever changed lots of industries but one of the most apparent is healthcare. Incidents for the chronic and specifically geriatric population are growing at an alarming rate and will significantly benefit from an increase in at-home care. The current at-home healthcare market is around $3.2 billion but growing at a 13.4% CAGR by projections will move this to a $7 billion industry over the next 4 years. This isn’t limited to just domestic products an aging population is driving rapid growth across Europe and Asia as well.

FINSUM: It makes sense that healthcare will move more at home. Software and digital products will improve the healthcare many in treatment will have access to inside their own home.

Energy stocks went through a long, rough period leading into 2021. Since 2014, the whole sector has been maligned by low prices and sluggish demand. Renewable energy had stolen a lot of attention and funding and the traditional energy sector languished. However, a unique set of economic circumstances means it may be the right time to get back into energy. Oil prices have been rising strongly (a good inflation hedge), which is a nice catalyst, but almost more importantly, higher interest rates—which are clearly on the horizon—are a big headwind for renewables. Renewable energy projects take a great deal of financing and a long time to set up, which means higher rates increase costs and slow down financings.

FINSUM: Energy seems to be getting back in vogue, that said, the rise of ESG standards in debt financing might mean traditional energy projects also suffer.

The Biden Admin has been tip-toeing around crypto regulation since it came into office, but now those public statements are actually materializing in the form of regulation. A top town security memorandum is expected to come down the pipes in the next few weeks which will task separate government agencies to develop regulatory policies around crypto, NFTs, and stable coins. The State Department, Treasury Department, National Economic Council, Council of Economic advisors, and White House Security Council will all be on the job. While the Whitehouse will avoid regulatory suggestions they are putting the burden on these agencies to propose stricter rules.

FINSUM: Crypto regulation isn’t necessarily bad; it's just another closer step toward legitimizing digital currencies in the eyes of countries around the globe.