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American Funds Still Has The Best Reputation Among Advisors (WealthManagement.com)
WealthManagement.com partnered with FUSE Research Network’s and drew on its its Advisor Trend Monitor series to highlight a list of 10 managers that have the best reputation among advisors. Despite its $US248 billion in net outflows since 2008, advisors still think American Funds has the best reputation among advisors. Here are the rest ranked 2. Vanguard 3. Fidelity 4. Franklin Templeton 5. PIMCO 6. BlackRock 7. Oppenheimer Funds 8. Dimensional Fund Advisors 9. JP Morgan and 10. Invesco.
If the Congress fails to arrive at a budget deal soon, we could see a partial government shutdown. In light of that, the SEC has announced that it will remain “open and operational” in the event of a shutdown. But in its summary of major functions that will be discontinued, the SEC said that review of registrations by “investment advisers, broker-dealers, transfer agents, nationally recognised statistical rating organisations, investment companies, and municipal advisors” will be suspended.
The SEC also said that “review and approval of self-regulatory organisation rule changes; review and acceleration of effectiveness of registration statements by issuers for securities offerings; review of periodic reports and other filings; and non-emergency support to registrants,” will be discontinued.
Advisors Have Increasingly Been Turning To Technical Analysis Since The Financial Crisis (The Wall Street Journal)
Since the financial crisis, portfolio managers have increasingly turned from looking at a company’s fundamentals, to technical analysis, in which one examines a stock’s price momentum against market moves, reports the Wall Street Journal. Cerulli Associates found that before the crisis, “an overwhelming number of advisers relied on strategic-focused allocations–the hallmark of fundamental analysis,” writes Murray Coleman at the WSJ. But by the end of 2011, “tactical portfolio management was being implemented in about 61% of adviser-led portfolio.”
“Fundamental analysis still works, but there’s so much real-time news and commentary available these days that markets have become more short-term in nature,” Clifford Brott of Dallas-based Capital Ideas told the WSJ. “To keep up, you’ve got to be a little more technical in your analysis.”
The Fed’s decision to delay tapering its $US85 billion monthly asset purchase program saw investors pile $US4.5 billion into bond funds. This was the largest weekly inflow in five months. Meanwhile, equity funds saw $US1.5 billion in outflows. U.S. equity funds were especially hard hit, losing $US7.4 billion, but investors poured $US2.3 billion into European equities.
JP Morgan’s chief U.S. equity strategist Tom Lee has a year-end S&P 500 price target of 1,775. He argues that the Fed’s decision to delay tapering its quantitative easing program should be enough to support stocks till the end of the year. This is for three key reasons.
1. Foremost, the recent move to all-time highs is quite constructive for the S&P 500. Only in 3 prior cases did the S&P 500 “sustainably pass multi-decade highs.” And in each of those cases “equity markets continued to advance for 5-15 years and increase another 136%- 314%.” 2. Valuations are still “supportive.” 3. Economic momentum is picking up in the U.S. and Europe and “cyclical stocks are demonstrating leadership.” This looks constructive for the market.
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