At Ameriprise Financial’s annual Women and Money luncheon on Tuesday, Columbia Threadneedle’s chief economist and senior portfolio manager Marie Schofield shared insights on the state of economy. In a nutshell, Schofield said U.S. growth is slow but stable, other established markets are slow and unstable, and emerging markets are slowing, unstable and extraordinarily fragile. The state of emerging markets are what's dragging down growth in established markets and is why, as Schofield put it, "inflation is nowhere to be seen." Despite the lack of growth, Schofield believes the Federal Reserve will continue to move forward with plans to raise interest rates, as it has successfully raised asset prices, increased confidence and suppressed volatility. Schofield added she hasn’t seen anything in the data to indicate another recession is on the way, but does believe the downturn in private profits and rise in corporate bond spreads indicates the current business cycle may end soon.
Despite millennials love for all things digital, a new study reports that they want to meet face-to-face with their financial advisor. The study, by the Insured Retirement Institute (IRI) and the Center for Generational Kinetics, shows that 87 percent of millennials want an advisor who will meet with them personally, coming in only slightly behind Generation X (89 percent) and Baby Boomers (92 percent). Conversely, only 19 percent of millennials said they were willing to use a robo-advisor. "The data tells me that financial advisors have an opportunity to win this generation,” said Jason Dorsey, chief strategy officer at the Center for Generational Kinetics. "Financial advisors can help millennials with saving, investing and retirement planning by walking millennials through the process, bringing the human perspective to key life moments, and helping them take action."
What is one of the biggest mistakes that advisors see among individual investors? According to information released in the Natixis Global Financial Advisor Survey, wealth planners are concerned about investors who are focused on short-term market events that then make irrational investment decisions. The research, which was conducted in June and included 300 financial advisors in the United States, notes that investors making emotional decisions is also a top concern. Failing to have a financial plan in place, keeping too much cash and not setting clear financial goals rounded out the top five. "Given today's market complexity, the role of advisers has become critical to helping investors set long term goals and stick to them. Being consistent is the key to avoid making rash investment decisions", said Terry Mellish, head of global institutional services and Middle East North Africa business at Natixis Global Asset Management.
LPL Financial snagged a former Goldman Sachs managing director to serve as the executive vice president of the firm’s service offerings. Tim Hodge, a 24-year veteran with experience in brokerage and platform management leadership roles, will oversee the delivery of LPL’s support services to advisors, banks, credit unions, RIA firms and clearing clients. Hodge’s hire comes on the heels of Monday’s announcement that LPL elected Viet D. Dinh to the firm’s board of directors. Dinh is a partner of the law and strategic consulting firm Bancroft PLLC, which he founded in 2003. In addition to LPL, Dinh serves on the boards of Twenty-First Century Fox and Revlon.