The Could Be A Power Vacuum In Saudi Arabia - And It Would Be 'Profoundly Dangerous'

A Power Vacuum In Saudi Arabia Would Be "Profoundly Dangerous" (Advisor Perspectives)

There have been reports about King Abdullah of Saudi Arabia's poor health and hospitalizations - and that's got everyone worried about what that means for the oil market and OPEC.

"For now, the greatest immediate risks to the region and markets from this issue are if (a) Abdullah were to become incapacitated or die, and (b) Crown Price Salman simply isn't capable of ruling," writes Bill O'Grady. "Since it isn't clear that Prince Muqrin would take power, a succession battle could develop sooner than expected."

"Given the challenges Saudi Arabia faces, from dwindling American power in the region to a stronger Iran and the breakdown of nation states in the area, a power vacuum in Saudi Arabia would be profoundly dangerous. If conditions deteriorate, it would likely end the current bear market in oil and lead to higher overall inflation in the developed world," writes O'Grady.

The Wealthier Millennials Are, The Less Likely They Are To Fire Their Parents' Advisors (Wealth Management)

New research from TD Ameritrade suggests that wealthier millennials are more likely than their poorer counterparts to keep their parents' financial advisors. Roughly two-thirds (63%) of high-net-worth millennials who are already using their parents' advisors have no plans to change, while only one-third of "mass affluent investors," reports Megan Leonhardt.

"As you move down the wealth spectrum, while the problems are the same, their advisors are less able to afford the training they need on how to connect," Vic Preisser, founding director of the Institute for Preparing Heirs, told WealthManagement.com in October. "The advisors to the very wealthy can afford to get the training on how to connect with the heirs."

Young And Successful Millennials Are A Promising Market For Advisors Looking To Add Clients (Financial Advisor Magazine)

A new report by TD Ameritrade shows that there are three subgroups of millennial investors - but advisors aren't getting at them.

While over half of advisor clients are over 60, just 10% of them are under 40. And 70% of "potential high-net-worth millennials" want an advisor to help with finances,

"Our latest research shows RIAs would be well-serving pursuing young investors who may not have great wealth yet, but who have high earnings potential and are eager to work with a professional advisor," said Tom Nally, the president of TD Ameritrade Institutional.

Fidelity's Contrafund Trimmed A $7 Billion Stake In Google (Reuters)

"Fidelity's $100 Billion Contrafund has trimmed a roughly $7 billion stake in Google Inc because of portfolio manager Will Danoff's view that the stock faces a potentially choppy market over the short term," reports Tim McLaughlin.

"We trimmed the position based on our view that the stock's short-term performance could remain choppy as investors digest the company's increased investment in data centers, as well as other initiatives not directly tied to its core search business," Contrafund said in its fourth-quarter update for investors.

Morgan Stanley Wealth Management's Role Continues To Grow (InvestmentNews)

Morgan Stanley's CEO James Gorman latest plan to help the firm achieve a 10% return on equity involves a greater role for its wealth management division.

"Although Mr. Gorman did not provide a time frame for the actions, he said he expected the execution of the 'bank strategy' which aims to grow Morgan Stanley's banking operations in part by adding clients from the wealth management group, and a reduction of expenses would help the overall company hit 10%, up from 8.9%," reports Mason Braswell.