The BRICs Are Fizzling Out
The BRICs Are Fizzling Out (Financial Planning)
Ever since Goldman Sachs's Jim O'Neill came up with the acronym about 10 years ago to represent Brazil, Russia, India and China, the MSCI BRIC index has gained 11% annually. But that growth has been mostly front-loaded.
This year, it saw an annualized return of just 1.4%.
By contrast, the US broad market index when up at an annualized return of 8.5%, but saw a one-year gain of 15.6%.
And since the BRIC nations have problems, investors are hesitant to really jump in. Brazil and Russia are suffering from oil problems, while China is slowing. India recently saw a surge stocks following the new government, but that leaves the shares 50% more expensive than the others.
The ECB May Provide A Degree Of Stability In A Volatile World (PIMCO)
The European Central Bank is expanding its balance sheet to mitigate low growth and lower inflation, which should keep European assets supported. Additionally, as volatility and geopolitical uncertainty continues to increase, the ECB will provide a degree of stability.
"In a world of relatively low government yield, European (and global) credit markets offer some attractive opportunities for higher returns. Investors may favor flexible, diversified credit strategies, which can take advantage of market opportunities and deliver return potential in the range of 4%-6%, with similar levels of volatility," writes Eve Tournier of Pimco.
Goldman Sachs Has To Pay 2 Brokers $7.6 Million (Reuters)
Goldman Sachs has to pay two brokers $7.6 million after they were "wrongfully terminated" back in 2007. The brokers alleged that Goldman forced them to forfeit deferred commissions after they were fired, reports Suzanne Barlyn.
"We do not believe that the law or the record remotely supports the finding on liability or the amount of damages awarded and we are considering our options, including an appeal," a Goldman Sachs spokesperson said.
3 UBS Advisers Just Left For Wells Fargo (The Wall Street Journal)
Three UBS advisers just left UBS Wealth Management for Wells Fargo. The team focused primarily on corporate retirement plans and high-net-worth families, reports Michael Wursthorn.
The team oversaw $463 million in assets, and generated $3.5 million in fees and commissions for UBS. They will be moving those assets to Wells Fargo in two offices, one in Chicago and the other in Chesterton, Indiana.
Married Couples Can Employ A Combo Strategy For Social Security (Investment News)
Couples always want to beat the system, so to speak, when it comes to filing benefits. But it's important to know that both cannot file restricted claims in an attempt to collect spousal benefits while their own retirement benefits grow until they turn 70.
Unfortunately, Social Security doesn't work that way. Fortunately, there is a way for couples to collect benefits together.
"Depending on their age differences and benefit amounts, a married couple could employ a combo strategy where one spouse files and suspends at 66 and the other spouse, who is also at least 66, files a restricted claim for spousal benefits only," writes Mary Beth Franklin. And then, "at 70, each spouse could switch to their own retirement benefit."