FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
LIZ ANN SONDERS: We Could See A 10% Correction, But The Bull Market Isn't Over (Investment News)
Speaking at the Inside ETFs conference in Florida, Liz Ann Sonders, chief investment strategist at Charles Schwab, said that she sees a "slightly elevated risk of a 10% correction this year ." However, she went on to add, "I don't think the secular bull market is over," reports Jeff Benjamin at Investment News.
Sonders thinks increased capital expenditure spending will help drive the bull market and added that inflation isn't a threat just yet. While she thinks concerns about profit margins are valid, she added that "unless you're rolling over into a crash, it has not been historically a problem for the market coming off all-time highs in profit margins."
What It Takes To Be A Successful Investment Manager (Vanguard)
John 'Jack' Granahan, a veteran portfolio manager for Vanguard at Wellington Management and then his own firm, Granahan Investment Management, identified the most important qualities that an investment manager needs to be successful.
"I've found that a long-term outlook is very important," Granahan said. "Some might question how much you can know about the long-term prospects of small emerging growth companies, the focus of our firm. But small-cap growth requires the imagination to look beyond the current quarter or the current year, to take a longer view."
In terms of personal temperament he thinks successful investment managers need to be curious and humble. "You really have to avoid the stubbornness, and I think a dose of humility really comes in handy. …On the other hand, you have to have confidence too. One does get challenged in this business, but experience and knowledge will improve one's confidence that overall your batting average is going to be good." Of course they also need to emphasize in-depth research and building relationships with management of companies they invest in.
The CFA Pass Rate Climbs To 43% In December Exam (Business Insider)
The Level I Chartered Financial Analyst (CFA) pass rate climbed to 43% for the December exam. This is up from 37% a year ago. 45,693 candidates took the exam in December. "The financial community is dealing with a crisis of investor trust, and industry education at all levels is a critical part of rebuilding that trust," John Rogers, CFA, president and CEO of CFA Institute said in a press release. "The next generation of investment professionals is instrumental in shaping the future of finance, and each one of these successful candidates has the opportunity to build the kind of industry culture that puts investors first and better serves society."
The Top 5 Next Generation IBD Advisors (WealthManagement.com)
Megan Leonhardt at WealthManagement.com is out with a list of the top 20 next generation independent broker/dealers. These IBD advisors are haven't hit middle age yet and are ranked by assets under management (AUM). We picked the top 5. 1. Jamie Cox of Harris Financial Group (LPL Financial) with $417 million in AUM; 2. Christopher W. Hall of Wells Fargo Advisors Financial Network with $322 million in AUM; 3. Tony Christensen of Wells Fargo Advisors Financial Network with $305 million in AUM; 4. Benjamin Rickey of Leonard Rickey Investment Advisors (LPL Financial) with $304 million in AUM; 5. Justin Harris of Cassaday & Company (Royal Alliance) with $301 million in AUM.
Broker Dealers Should Stop Trading Old Advisors (FA Mag)
Speaking at the Financial Services Institute's annual conference in Washington DC, Mark Tibergien, CEO of Pershing Advisor Solutions said brooder dealers need to invest in youth instead of recruiting older advisors. "This is a business built for and by boomers, but it isn't a business for boomer [clients anymore], it's for Gen X and Gen Y," Tibergien is quoted saying by FA Mag.
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