FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
BlackRock's Russ Koesterich Identifies Four Risks In Bond Portfolios (iSharesBlog)
Bond portfolios can contain more risks than investors realize, according to BlackRock's Russ Koesterich. These include 1. "The eventual end of QE" - When easy money dwindles bond prices will fall. 2. "Extreme positioning" - Investors chasing income have purchased bonds but "these 'conviction-less' trades could easily reverse". 3. There is "acute interest rate risk", and 4. "A breakdown in asset correlations" which means there could be better returns for those willing to take risks now.
A Goldman Sachs Employee Lost Her Job After Falling For A Scam (The Wall Street Journal)
Eileen Appelblatt a former Goldman Sachs employee lost her job after 30 years with the firm when she fell for a scam. She was let go because she allegedly provided inaccurate information in her wire transfer request. Appelblatt was also given a $10,000 fine and a 60-day suspension from Finra. The regulator also said an increasing number of financial professionals are being targeted by those carrying out financial frauds.
The Worst Investment Strategy Of 2013 (Goldman Sachs)
Goldman Sachs
Rosenberg: Gold Is Going To $3,000 (Business Insider)
Gluskin Sheff's David Rosenberg is speaking at a CFA Institute event in Chicago today. Rosenberg has reiterated his call for gold to reach $3,000 per ounce. Rosenberg has been making this call for some time now.
He also reiterated that in a low interest rate environment like we're seeing, investors should focus on S.I.R.P. (Security and Income at a Reasonable Price). He favors corporate bonds and dividend stocks.
Institutional Investors Are Still Investing In IPOs (Investment News)
While the IPO market itself seems to be slowing, institutional investors' demand for IPOs is strong. A survey of over 300 institutional investors by Ernst & Young showed that 82 percent had invested in IPOs in the past year. That is up from 12 percent in 2010 and 2011.