With tax cuts boosting consumer spending, the U.S. is poised for another good year

Stocks have just accomplished a Houdini – scorching to record highs while escaping volatility. The S&P 500, which accounts for 80 percent of the value of publicly traded U.S. companies, just scored an unprecedented 14 consecutive monthly gains. Investment professionals will tell ordinary folks a year like 2017 simply can’t repeat. Gains will slow or the… Please follow and like us:

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BoA: Cash Levels Show Market Sentiment Remains Subdued

Even though equity markets around the world continue to march higher, and show no signs of slowing down anytime soon, it seems investors would still instead invest in bonds. According to the latest issue of Bank of America’s Flow Show Report, during the first week of January, investors withdrew $4.5 billion from equity funds ($3.9 billion… Please follow and like us:

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Inflows Into Nearly Every Asset Class In 2017 – 2018 Warm Up Act?

Although the overarching story of global markets in 2017 was subdued volatility, overall there were net inflows almost entirely across the board – with global equity mutual funds/ETFs (US$281bn), bond funds (US$346bn), global money markets (US$145bn) and commodities (US$8.6bn) recording increases. Investors poured record net inflows of over $620bn into global equity mutual funds/ETFs and bond… Please follow and like us:

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ETF Assets Predicted to Surge 73% by 2020: EY Global Report

Exchange-traded-fund assets are expected to reach $7.6 trillion by the end of 2020, up from an estimated $4.4 trillion at the end of September, according to a new report by EY, a consultancy firm. Several factors favor ETFs’ fast global expansion, the report said. These include the shift to passive investing, low yields, regulatory efforts around… Please follow and like us:

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7 Disturbing Findings About 401(k)s, IRAs

Moving from defined benefit pension plans to defined contribution plans has not done the average U.S. worker any favors. In fact, it’s made retirement more of a gamble—will there be enough money, or for that matter, any money, available when the time comes to leave the job behind? A new study from the Center for Retirement… Please follow and like us:

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Why Advisors Are Turning to Alts

Years after the global financial crisis, the advisory community continues to grapple with portfolio diversification. Fortunately, the increased availability of alternative mutual funds means that advisors have new diversification tools available to them. Viewed individually, each alternative asset classes presents what is known as a bi-modal distribution of data. These bi-modal distributions confirm that the correlations… Please follow and like us:

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Goldman: ETF Demand Will Hit A Record $400 billion In 2018

ETF demand will reach a record high of $400 billion in 2018 according to Goldman Sachs. The bank lays out this forecast in its Flow of Funds: Outlook for US equity demand in 2018 report, which was published earlier this week. The report, a copy of which has been reviewed by ValueWalk, predicts that flows into… Please follow and like us:

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ETFs: Why They Keep Growing on Advisors

Ease of use, lower expense ratios and transparency are among the many reasons that financial advisors have become big advocates and users of exchange-traded funds, according to an online survey conducted recently by ThinkAdvisor.com. The advisor poll focused on advisors’ usage, strategies and other trends related to ETFs, which are estimated to have some $3 trillion… Please follow and like us:

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Why Robo-Analysts, Not Robo-Advisors, Will Transform Investing

This article first published as an op-ed on The Financial Revolutionist. Get The Full Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. We respect your email privacy Robo-Advisors AUM Could Grow To $5 Trillion… Please follow and like us:

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Concentrated Stock Investing Through a New Lens

Many investors have amassed vast wealth by acquiring and holding concentrated stock. Some were bequeathed stock. Others acquired stock via liquidity events, or throughout their careers at public companies. Some investors, like Warren Buffett, famously employ concentrated stock investing (CSI). There’s considerable empirical evidence to support CSI’s outperformance.[i] The premise underlying CSI runs counter to the… Please follow and like us:

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How much gold do Americans own?

Did you know that 23 percent of U.S. households have more than one refrigerator? Or that American workers who earn between $75,000 and $99,999 contribute an average of 7.7 percent of their incomes to retirement accounts? Americans live in what is almost certainly the most quantified society in the history of human existence. We are measured… Please follow and like us:

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Filling UST Void Would Require Rates 120 BPs Higher Or Stocks 30% Lower: BAML

Bank of America Merrill Lynch is predicting an equity-rate convergence trade because of what it calls a trifecta of increasing U.S. treasury supply, declining demand and the need for pension and mutual funds to step up. At the heart of the bank’s call is increased Treasury supply over the next five years – anywhere between $3… Please follow and like us:

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5 Myths About ETFs and Mutual Funds

The concept of “fake news” is certainly not foreign to most ETF investors. The ETF industry has experienced exponential growth over the past two decades, and with that progression also comes an influx of self-styled experts. A Twitter handle, blog, website or even a guest appearance on a television show can now provide platforms for such… Please follow and like us:

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Why Menendez opposed Trump pick to regulate Wall Street

WASHINGTON — When the Senate confirmed Wall Street lawyer Jay Clayton to chair the Securities and Exchange Commission, U.S. Sen. Robert Menendez voted no. Among his concerns: Clayton wouldn’t support efforts to require publicly traded corporations to disclose how much of their shareholders’ money they spent on politics. While corporate political action committee contributions are disclosed,… Please follow and like us:

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The Groups and Businesses Cheering the Fed’s Rate Hike

This article originally appeared on The Conversation. The Federal Reserve this week lifted short-term interest rates a quarter point and signaled that more hikes are to come over the course of the year. The Federal Open Market Committee raised its benchmark lending rate to a range of 0.75 percent to 1 percent, as expected, and projected… Please follow and like us:

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