3 reasons why you should groom young talent
3 reasons to develop young talent (Wealth Management)
Every organization likes to have "home grown" talent. While grooming a new advisor might take some time, Wealth Management says there are three big reasons why it's a worthwhile pursuit. First, a young advisor can help produce more revenue. Next, teaching others improves your own knowledge of the subject matter. Finally, it will let your clients know there will be someone to take care of their finances after you retire.
Jeff Gundlach thinks the Fed is afraid of hiking and then having to reverse (Reuters)
Bond guru Jeff Gundlach of DoubleLine Capital thinks the most notable part of the Fed's September statement is the inclusion of recent global economic and financial developments, Reuters reports. In May, Gundlach suggested the Fed would keep its Fed Funds rate pinned to the zero bound for all of 2015, and he is not backing off that call. "There is not enough global growth to go around and the Fed realizes it," Gundlach said. He continued, "Global growth has to improve for the Fed to raise rates."
JP Morgan thinks the Fed will hike in October (Business Insider)
Despite the Federal Reserve making note of global economic developments and near-term downward pressure on, JP Morgan Asset Management believes an October rate hike is coming. Priscilla Hancock, the firm's global fixed income strategist, opines October will be the only rate hike of 2015, but four more rate hikes are on the way in 2016. Over the long-term JPM sees US growth and higher interest rates leading to an even stronger dollar. Additionally, JPM believes bear flattening (short-term rates move up more than long-term rates) will occur along the yield curve.
Advisors are preparing clients for higher interest rates (Financial Planning)
On Thursday, the Federal Reserve failed to raise its benchmark interest rate for the first time since 2006. Despite the Fed's inaction, advisors are still preparing clients for a period of higher interest rates. Financial Planning says Ginger Snyder and her firm, 360 Wealth Management of Raymond James, have been prepping their clients for higher rates by raising cash by reducing exposure to overseas markets and sectors sensitive to changes in in interest rates.
FINRA approves financial fraud protection for seniors (Financial Advisor)
The Financial Industry Regulatory Industry has approved several measures to give seniors more protection from financial fraud. According to Financial Advisor, broker/dealers will be protected if they prevent funds from being distributed because they believed the transaction exploits seniors or adults with metal or physical disabilities. The regulatory agency is also telling firms to make their best effort to obtain contact information for a trusted contact, Financial Advisor says.