FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Senator: “Young people are being robbed by older generations” (Financial Advisor Magazine)
At a committee hearing on Wednesday, Indiana Republican Senator Dan Coats said that millennials are receiving lower starting wages than previous generations, the number of people under 30 owning a business has fallen to a 30-year low, and roughly 44% of recent college grads are underemployed, reports Ted Knutson.
“Young people are being robbed by older generations,” he said, adding that “millennials have no fair shot at receiving fair value for the taxes they are paying into Social Security and Medicare benefits for baby boomers,” according to Knutson.
American investors aren’t feeling to great about their financial situations. Just 13% feel “confident, comfortable and secure” about their current situations, according to a new survey by Hearts & Wallets. This marks the second year in a row that investors reported declining levels of financial confidence, reports Danielle Andrus.
“A big factor in that increase is no doubt the recent announcement that there will be no increase in the cost of living adjustment for Social Security. Concerns about the future of Social Security moved from the No. 3 concern in 2014 to No. 1 this year,” writes Andrus.
Advisors think that market conditions favour active managers right now (AllianceBernstein)
Advisors think that it’s the right time now to increase their allocation to active management strategies, according to a new AllianceBernstein survey of 200 financial advisors. 70% of those surveyed believe that “the current market conditions favour an active approach.”
The survey results also showed that 32% of those polled believe liquidity issues “are their biggest concern for investing in high-yield ETFs, but 1/3 don’t have a strong understanding of these issues.”
Portugal is not Greece (Advisor Perspectives)
Portugal recently held parliamentary elections where the incumbent party received the most votes but not an outright majority. But then the center-left opposition and far-left parties formed a coalition, together getting a majority of votes. And, now there’s a chance that internal politics might be a bit volatile.
“Although maintaining the balance of the political process remains complex, Portugal is not likely to devolve into the ‘next Greece,'” argues Kaisa Stucke of Confluence Investment Management.
“Thus far, financial markets have not discounted for additional political turbulence in Portugal, and we believe that, although the situation merits close following, it holds a very low likelihood of deteriorating to a point where the country would leave the Eurozone or reject austerity unconditionally.”
UBS just swiped up 3 Credit Suisse teams managing $US3.2 billion (InvestmentNews)
UBS Private Wealth Management scooped up three Houston teams managing $US3.2 billion from Credit Suisse. All three specialize in ultra-high net worth and family office clients, reports Laura Sanicola.
“All three teams will report to Raymond DiNunzio, managing director at UBS Private Wealth Management, and will continue working out of Houston,” according to Sanicola.
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