FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Stocks Have Begun The Transition From Their Reliance On Monetary Policy To Fundamentals (BMO Capital Markets)
Brian Belski at BMO Capital Markets has raised his S&P 500 target to 1,650 from 1,575. This he says was “driven by a reduction of the equity risk premium (ERP) to 4% from 4.5% that we apply in our DDM and P/E models. He also thinks stock prices are beginning to reflect fundamentals over monetary policy. “This does not mean volatility will evaporate. To the contrary, we believe there is a very good chance that stocks will continue to exhibit sharp moves in both directions akin to what has transpired in recent weeks. As such, US stocks may have already put their high in for the year. However, given our penchant for investing and not market timing, we would advise clients to build positions on pullbacks and decrease potential tracking errors on stocks that have become extended.”
There are 9 million households headed by single women that have investible assets of over $100,000. And 60% of those women are expected to look for financial advice through 2015, according to Information Asset Partners (IAP) and Meridian-IQ, cited by FA Mag.
California had the largest retail investor market with 12.3% of affluent single-woman investors and New York was second at 8.3%. The study found no co-relation between the number of affluent female investors and female advisors.
Back in 1994 the surge in interest rates devastated bond investors. In a new report, Deutsche Bank says if what we’re seeing now is like 1994 it’s a good time to buy stocks.
SEC Nominees Back Move For More Public Accountability In Settlements (Investment News)
SEC nominees Kara Stein and Michael Piwowar told lawmakers that they support “ending enforcement settlements that allow targets to avoid admitting or denying the charges,” according to Investment News.
Current policies allow firms to settle without admitting to charges. Recently SEC chairman Mary Jo White pushed for a change in policy that would see firms admit to charges in some instances.
Investors pulled a record $23.3 billion from bond funds in the week ending June 26. Bank of America’s chief investment strategist Michael Hartnett called it ‘bond market liquidation.’ And these redemptions were at record highs in emerging market bond funds, high yield bond funds, investment grade, and mortgage-backed securities funds.
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