A screen displays a news conference by Federal Reserve Chair Janet Yellen as a trader works on the floor of the New York Stock.
Most advisors don't believe a September rate hike is coming (Think Advisor)
A Fidelity survey of financial advisors found just 18% believe the Fed will lift its benchmark interest rate for the first time since 2006 at Thursday's meeting. However, the majority (62%) say a move is coming before the end of the year. Think Advisor says advisors' biggest concern is the global economy. Currently, the market projects a 28% probability of a Fed rate hike at Thursday's meeting and a 62.2% probability a move occurs before the end of the year.
InBev wants to buy SABMiller (Business Insider)
SABMiller shares are up 22% after Anheuser-Busch InBev, the world's largest brewer, approached the company about a takeover. SABMiller, the world's second-largest brewer, acknowledged that InBev has acknowledged it plans to make an offer, but noted no proposal had been received. According to the Financial Times, the deal could be valued at up to $250 billion.
Men are better savers for retirement than women (Financial Advisor)
Financial Advisor says a study conducted by Financial Finesse determined there is a huge gap between how much men and women save for retirement. According to the data, the average 45-year old male who wants to retire at the age of 65 has a shortfall of $267,233, but that is nothing compared to the $522,262 shortfall for the average 45-year old woman with the same goal. Financial Advisor notes the study found the savings gap can at least partially be attributed to men typically having more savvy investment knowledge and a higher confidence in asset allocation. Also, "There are additional challenges women face: longer life expectancy, higher health costs, time out of the workforce that put them behind the eight ball," Greg Ward, director of Financial Finesse's think tank, told Financial Advisor.
Robo Advisors need crazy growth to survive (Wealth Management)
Wealth Management says the next six years are critical for the survival of robo advisors. The publication points to research conducted by Cerulli Associates, which suggests robo giants Wealthfront and Betterment need 50 to 60 percent annual growth over that time to "satisfy their investors." The researcher goes further in saying a bear market could be devastating to the companies as it might threaten their ability to keep clients. However, Cerulli says maintaining a a growth rate on that scale is possible. It points to Vanguard sustaining a 72% compounded annual growth rate from 2008 to 2013, says Wealth Management.
BlackRock has a new head of its US wealth advisory business (Investment News)
BlackRock has chosen Salim Ramji as the next head of its US wealth advisory business. A year ago, Ramji left McKinsey & Co. to join BlackRock as its head its corporate strategy. Ramji's predecessor, Frank Porcelli, "will become the unit's chairman and focus on developing offerings such as FutureAdvisor, the digital wealth management firm BlackRock agreed to purchase last month," according to a BlackRock memo obtained by Investment News.