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Celebrities and athletes 'make the worst clients' for financial advisors

Feb 20, 2016, 02:45 IST

An employee of the Mikazuki hotel group poses in an 18k gold bathtub during a press preview of one of six golden bathtubs in Kisarazu, east of Tokyo June 30, 2005. Japan's top bullion house Tanaka Kikinzoku Jewelry K.K. has created the 1.2 metres (4 ft) long, 65 cm (2 ft) deep and 50 kg (110 lb) of gold for the tub, worth 120 million yen ($1.1 million) apiece, for the hotel chain which is hoping the glittering tub will help draw more visitors to its seaside hot springs.Reuters

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Celebrities and athletes "make the worst clients" (InvestmentNews)

Being an advisor to celebrity clients comes with unique challenges. Advisors must address their atypical income profiles, occasionally protect them from bad investments, and make sure they do not overspend.

"Everyone wants to be their adviser, because they think it's sexy and interesting," Jeremy Office, a principle at Macledon Wealth Management told InvestmentNews. "But it's really not. [Celebrities] are the worst clients, especially athletes."

The FBI raided Kyle Bass' latest short target (Business Insider)

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The FBI raided the office of United Development Funding IV, a Texas-based real estate investment trust (REIT) that was the latest short target of Texas hedge fund manager J. Kyle Bass, the founder of Dallas-based Hayman Capital Management, reported Business Insider's Julia La Roche.

The stock fell more than 54% to $3.20 on Thursday after which trading was halted.

The world isn't slipping into a recession just yet (Charles Schwab)

"The correction in stocks doesn't yet seem to be corroborated by a sharp US economic downturn. In fact, recent economic data has been encouraging, but shattered confidence can lead to a self-fulfilling prophecy," wrote Charles Schwab's Liz Ann Sonders, Brad Sorensen, and Jeffrey Kleintop. "Recent economic readings from around the world also suggest that the globe is not slipping into a recession."

"The investing environment continues to be uncertain, with confidence among businesses and investors shaken. History, however, has proven that times like these can make or break successful investing strategies," they added.

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Keep an eye on Asian consumption-related stocks (Advisor Perspectives)

"We would argue that growth is indeed very difficult to find these days, but Asia is a good place to look. Within Asia, the consumption theme is one of the most investable we can find," argued David Dali of Matthews Asia.

"Performance in 2015 highlights the defensive nature of consumption as consumer staples and health care were the best-performing sectors ... within the MSCI All Country Asia ex Japan Index," he added. "Interestingly, the three-year and five-year sector returns show a similar result where consumer staples and health care outperformed more cyclical sectors - illustrating the theme's potential robust nature."

Bernie Sanders raised $16 million from unemployed and retired Americans (Bloomberg)

Bernie Sanders raised over $16 million from 235,000 people who identified themselves as unemployed or retired, reports Bill Allison.

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To date, Sanders has raised more money than any candidate except Hillary Clinton. Nearly three-quarters of the $73 million he has raised comes from donations of $200 or less.

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