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FINRA’s Broker Bonus Rule Is Almost A Done Deal (Advisor One)
The Financial Industry Regulatory Authority (FINRA) wants a new rule that would force brokers to disclose their recruitment compensation when they switch firms. According to FINRA, “customers would benefit from being told the material conflicts arising from a registered person being paid recruiting incentives to change firms.”
The Securities Industry and Financial Markets Association (SIFMA) told FINRA on Tuesday that brokers should only have to reveal their recruitment compensation packages to clients when there is a potential conflict of interest
Securities lawyer Patrick Burns said that with SIFMA’s support, FINRA’s “proposal’s chances of becoming a new rule seem to be a done deal.”
JP Morgan Revamps Its ‘Guide to Retirement’ (Financial Advisor Magazine)
JP Morgan Asset Management has expanded its “Guide to Retirement” to include a savings checklist that will help investors figure out if they are saving enough for retirement. The section on health care costs, which is a key concern for retirees, was also reworked to include a break-up of annual costs, said JP Morgan’s chief retirement strategist Katherine Roy.
“We also fine-tuned our information on inflation,” Roy said, “because advisors say their clients are concerned about their purchasing power and its effect on those in their 50s.
“The section on housing costs was also fine-tuned because we found those over 65 often spend more of their share of wallet on housing than those who are younger.”
For Double-Digit Returns, Look To Philippines Stock Funds (The Wall Street Journal)
While markets in China, Russia and Brazil are performing far below their peak, Philippines stock funds are soaring to all time highs. The iShares MSCI Philippines ETF (EPHE) is up 52 per cent in the past 12 months.
“After years of going through boom-and-bust cycles, a wave of economic and political reforms appear to be positioning the Philippines for long-term growth at a more stable pace,” said Michael Yoshikami, chief executive at Destination Wealth Management, who recently visited the country to talk to local corporate executives.
“Business leaders are more optimistic, but there’s not a sense of euphoria,” he said, “They’re very sober and more cautious than I’ve seen in the past.
There Are Many Similarities Between The Bull Market Of The 80s And Now (Richard Bernstein Advisors)
Bull markets are typically characterised by fear and indecision, according to Richard Bernstein of Richard Bernstein Advisors, and many of the issues that worried investors in the eighties are similar to the issues that are worrying investors now.
“Similar to what is keeping investors on the sidelines during the current bull market, investors stayed out of the 1980s bull market for so long because there were many issues that investors thought were insurmountable,” said Bernstein, in a note.
Take a look at this table:
Photo: Richard Bernstein Advisors
Easy Money Is What’s Been Driving The Market Rally (Blackstone)
More than anything, the Fed’s easy money policy is bolstering equities, said Blackstone’s Byron Wien, in a note. Money flowing into the stock market has nearly doubled since 2009, which is when the Feb began the first round of quantitative easing.
“The performance of the market so far this year has largely been a function of monetary expansion, in my opinion, and the low level of interest rates has also had a positive impact on corporate profits,” said Wien.
“Right now stocks are on their way to deliver another double-digit year for the S&P 500, but if margin pressure begins to appear, as I suspect, then a more modest return is likely.”
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