FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Almost 40% of Americans say their top financial priority is keeping up with bills (Bankrate.com)
More than one in three (38%) Americans say that staying current on living expenses or getting caught up on bills is their number one financial priority, according to a survey by Bankrate.com. Paying down debts (21%) and saving (18%) follow in second and third place.
“As Americans await the appearance of sustained income growth, the top priority of staying current or getting caught up on bills is testament to the tightness of household budgets,” said Greg McBride, CFA, chief financial analyst at Bankrate.com.
“We are seeing troubling trends which could lead the Fed to punt yet again. The dollar has been strengthening, stocks have been selling off anew (with deteriorating breadth), and volatility is moving higher. So far, though, credit spreads and the yield curve are behaving,” writes Charles Schwab’s Liz Ann Sonders.
“Surprising perhaps is that expectations for a December hike have not withered more. Following the strong October jobs report, they shot up to 68% and even with the Paris attacks, they have only retreated to 64%. We will watch this implied probability closely over the next few weeks,” she added.
“Spending is stronger than many believe” (Nuveen via Advisor Perspectives)
“Since the end of the Great Recession, consumers appear to be saving more. At the same time, many brick-and-mortar stores have been struggling and offering poor forecasts for future growth. This has led some to believe that consumer spending levels are weakening,” writes Robert Doll of Nuveen Asset Management.
“Despite these trends, however, we are seeing strong spending in such areas as housing, housing-related sectors and e-commerce. Additionally, for the first time in 20 years, consumer real income expectations are rising. To us, this suggests spending is stronger than many believe,” he argues.
Some sectors could could crash and burn following a rate hike (InvestmentNews)
Paul Schatz, president of Heritage Capital, told InvestmentNews that he thinks the markets will won’t automatically embrace new rates, and that we will see a “vicious sector rotation” where some sectors will face head winds.
“A rising-rate cycle is agnostic for technology, consumer discretionary and retailers,” he told InvestmentNews. On the flip side, “it’s really good for banks and financials, because they will be able to make more on the interest margins.”
Raymond James just scooped up a $US2.9 billion team (Financial Advisor Magazine)
Raymond James just added a $US2.9 billion team of advisors led by Chris Mahoney based in West Nyack, NY. Previously, the team represented Merrill Lynch, where they had annual revenues of $US7.7 million, according to FA Magazine.
“Leaving a firm where I had the opportunity to build and lead a successful team was bittersweet,” Mahoney said. “But we have a long-established value proposition that our clients have come to expect and that we believe can be delivered partnering with Raymond James.
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