Displaying items by tag: volatility

According to a recent article on CNBC, market volatility is a big concern for clients right now. The author spoke to experts from CNBC’s Financial Advisor Council to see what advisors were discussing with their clients. According to the advisors, many clients, including retired investors and those that rely on savings, are especially worried about volatility in the market. The article quoted Carolyn McClanahan of Life Planning Partners in Florida, who stated that “The biggest concern for my clients is all of the uncertainty in the world. They wonder ‘what’s next and how that would affect the market — so it’s along the lines of fear of market volatility.” Investors are also fearful of large-scale job losses triggered by their memories of the Great Recession when unemployment peaked at 10% in October 2009. Home prices are another concern. While there are some signs that the housing market may be cooling down, a combination of rising mortgage rates and high prices are still causing concern for investors.


Finsum: Based on recent discussions with advisors, market volatility, job losses, and high home prices are huge concerns for clients right now.

Published in Wealth Management

Last week, Federal Reserve Bank of Chicago President Charles Evans said that volatility in the markets can create additional restrictiveness in financial conditions. Last week, global markets saw increased volatility triggered by turbulence in the UK markets. Investors in the UK were spooked by the government’s program of unfunded tax cuts, which sent the pound tumbling and the cost of government debt spiking. In fact, volatility bets last week were at their highest levels since March 2020. Evans said that “The U.S. economy and inflation are going to be largely dictated by the stance of monetary policy and everything else that is going on supply shocks, the labor issues we're dealing with. It is a case that financial market volatility can add to additional financial restrictiveness. So, anything around the world in terms of policy or developments like Russia's invasion of Ukraine can add to additional restrictiveness." Still, he did not indicate that financial conditions would change the Fed’s current course.


Finsum: Chicago Fed President Charles Evans stated last week that market volatility can create additional restrictiveness in financial conditions, but gave no indication the Fed would change course.

Published in Wealth Management
Thursday, 22 September 2022 05:20

Charles Schwab Warns of More Volatility This Year

In a recent Business Insider article, Charles Schwab is warning that stocks could see more volatility through the rest of this year, as we head into what the firm considers a weak earnings season. The company believes that more companies could miss earnings estimates in the following quarter, using FedEx as an example. The transportation firm slashed its earnings guidance last week in what is expected to be a sign of things to come for the rest of the S&P 500. In a note on Monday, analysts stated, "We believe the weakness in expected earnings growth is early in its trip to an ultimate negative (year-over-year decline) destination." Analysts also noted that the rate at which S&P 500 companies beat earnings expectations fell to 5% last quarter. This compares to over 20% in the middle of 2021. The company noted that the trend could be even lower in the third quarter as earnings reports come in. Excluding the energy sector, Schwab estimates that earnings growth in the S&P 500 will shrink by 2% over the third quarter, down over 11% from June.



Finsum:Analysts atCharles Schwab are warning of more stock volatility as we head into a weak earnings season.

Published in Wealth Management

COVID was one thing, but what about reconfiguring the economic landscape?

Among treasurers, the escalating significance of ESG related objectives reflected exactly that, according to gfmag.com.

Today, companies are looking at pressure to adopt ESG principles from stakeholders squarely in the eye, the site continued. The consequence of not embracing, defining and delivering on those initiatives? Potentially allowing the competition to slip through its fingers. And that means more than a diminished reputation or the perception of failing to d the right thing. In the face of market volatility, investments and companies with ESG profiles that rock outdo others, studies show more and more.

Meantime, in light of an uptick in interest among investors in ESG topics, regulators have been burning the midnight oil to come up with consistency and transparency surrounding ESG claims, according to acacompliancegroup.com.

A gaggle of firms also are taking a swing at establishing themselves apart from their peers by committing to, for example, climate and sustainability. 

There will be an awareness of the surge in activity related to the FCA on ESG issues among firms with UK operations. Since the Taskforce on Climate-Related Financial Disclosures has come into effect during the past year, the FCA’s created a division to oversee ESG-related issues. It clarified its strategic direction and focus areas for ESG issues.

Tim Rowe, manager in the FCA’s Sustainable Finance Hub, noted that the FCA is laser focused on five “Ts” for its ESG strategy: transparency, trust, tools and transition. 

Published in Eq: Financials

According to the findings of the Advisor Edition of State Street Global Advisors’ Inflation Impact Survey, the vast majority of investors who are currently working with a financial advisor, believe their advisors’ insight and guidance are valued more today during the current period of market volatility and rising inflation. The survey revealed that approximately three-quarters of investors have discussed inflation with their advisors and how inflation will impact their investment goals in both the short and long term. 90% say they value their financial advisors’ knowledge and guidance even more during uncertain times, and 86% believe their advisor has helped them remain confident during the current period of rising inflation and market volatility. The data follows the initial findings of State Street’s Global Advisors’ Inflation Impact Survey that showed inflation-induced stress and anxiety is influencing investor behavior with short-term budgeting and long-term financial goals.


Finsum:State Street’s Inflation Impact Survey revealed that investors are placing a higher value on their financial advisor’s guidance during times of heightened market volatility and inflation.

Published in Wealth Management
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