FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Americans still have anxiety over the economy (Marketplace and Edison Research)
Marketplace and Edison Research teamed up to create the Economic Anxiety Index, which strives to explain why so many Americans are discontent over the their personal economic situations. The survey had a rating scale of 0 to 100, and found Hispanics (44) and African-Americans (38) were the most stressed about their economic situations while Whites (28) were the least worried. Additionally, millennials (aged 25 to 34) were the age group most concerned about their current economic standing. The research found 63% of respondents are “sometimes or frequently anxious about their financial situation” and 42% feel “stuck in their current financial situation.” 28% of those surveyed said they lose sleep over their financial situation, according to Marketplace and Edison Research.
A tentative budget deal has been reached (Business Insider)
The White House and congressional leaders have agreed to a tentative budget deal that will set government spending levels for the next two years and raise the debt ceiling until March 2017. Specifics of the bill include providing $US80 billion of sequester relief and making sure Medicare Part B premiums don’t increase for millions of Americans. The deal could be voted on as early as Wednesday in the House of Representatives, but its passage is no sure thing. Conservative groups Heritage Action and Club for Growth have already said they would appose the deal. “It represents the very worst of Washington — a last-minute deal that increases spending and debt under the auspices of fiscal responsibility,” Heritage Action CEO Michael A. Needham and Club for Growth president David McIntosh said in a joint statement. “If this deal moves forward, it will undermine efforts to unite the party by those promising to advance serious policy reforms.”
Alibaba blew past estimates (Business Insider)
The Chinese e-commerce giant announced adjusted earnings of $US0.57 per share, topping the Wall Street estimate by three cents. Revenue surged 32% versus a year ago to $US3.5 billion (22.2 billion yuan), outpacing the $US3.4 billion that was anticipated. “User engagement is healthy with more buyers purchasing across more categories,” the company said.
Scott Rothstein’s financial advisor was sentenced (Investment News)
In 2010, attorney Scott Rothstein was sentenced to 50 years in prison for masterminding a $US1.2 billion ponzi scheme after being convicted of wire fraud, money laundering and racketeering charges. Back then, his financial advisor, Michael Szafranski, was ordered to pay restitution of $US6.5 million. Now, Szafranski
been sentenced to two and a half years in prison for wire fraud, according to Investment News.
On Friday, the Securities and Exchange Commission is expected to announce a rule that will open crowdfunding to all Americans. The opportunity has so far only been available to investors with at least $US1 million in assets, excluding the value of their home, according to Reuters.
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