FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
“More Fireworks” Could Be Coming Out Of Greece After Syriza’s Win (Advisor Perspectives)
The Syriza Party was elected in Greece over the weekend, which hit a few nerves for investors.
“Some fears that if the EU does not agree to such a debt restructuring and a scale-back of austerity measures, Tsipras and his new coalition could decide to withdraw from the EU, which would cause chaos in the European financial markets over the coming months. Some argue that Greece’s withdrawal from the EU could mean the end of the euro,” writes Gary Halbert.
“Investors must now wait for Tsipras to spell out how he plans to negotiate Greece’s future financing needs… So look for more fireworks coming out of Greece just ahead,” writes Halbert.
There’s A Huge Divide Among Advisers On How To Play The Strong Dollar (Financial Planning)
The strong dollar was a major story last year, and now it looks like this is a long-term trend. Some advisors recommend raising exposure in foreign stocks because as the dollar strengthens, US goods and services become less competitive in foreign markets.
Others argue the opposite, saying that foreign stocks might recede as the dollar strengthens because a strong dollar reflects a strong economy, which can boost domestic corporate profits and stock prices.
Additionally, some advisers suggest looking at currency volatility. “We have moved some assets to managers with strategies where a significant portion of the returns can be attributed to currency plays, if the managers are good at it,” Cleary Gull’s Brian Andrew said.
Let’s All Relax For A Second — Big Brokerages Aren’t Going Anywhere Yet (The Wall Street Journal)
Although it looks like major brokerages were going to seriously struggle in the past few years (especially given the rise of independent brokerages), client assets are actually “swelling” at firms like Morgan Stanley and Bank of America’s Merrill Lynch, according to Michael Wursthorn.
“The independent channels are still taking away market share, but that takeaway has slowed down,” said Bing Waldert, a director a industry researcher Cerulli Associates.
The primary driver of big brokerages has been the rising stock market, which has moved into record territory. Additionally, there has been greater industry stability.
Global Diversification Might Really Pay Off This Year (Financial Advisor Magazine)
2015 could be the first year in a while where global diversification rewards investors, Schwab’s chief investment strategist Liz Ann Sonders told attendees at a Women in ETFs breakfast.
“US markets have now significantly outperformed most other markets for more than three years, she noted. For financial advisors practicing global diversification with client portfolios, the fact that this strategy has underperformed domestic-only equities has become a conversation point with some clients,” reports Evan Simonoff.
AMG Is Picking Up A $US6 Billion San Francisco-Based RIA (Financial Planning)
AMG Wealth Advisors announced that it was taking a majority stake in Baker Street Advisors, a San Francisco-based investment adviser with $US6 billion in assets under administration, according to a press release, reports Mason Braswell.
“As part of the deal, Baker Street’s partners will still retain a ‘substantial’ portion of their equity and direct the day-to-day operations,” reports Braswell. But additional details of the transaction were not stated.
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