Reg BI Might End Up Hurting More Investors Than It Helps. Here's What Advisors Can Do

On the surface, the SEC's recent adoption of Regulation Best Interest (Reg BI) is a win for retail investors.

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Portfolio Optimization in Volatile Markets

Portfolio optimization (also referred to as portfolio rebalancing) involves strategically adjusting portfolio asset weights in order to optimize asset allocation for an investor's desired balance between growth and risk. Every investor has unique objectives, timelines, and resources, and a well-crafted portfolio will contain asset weights appropriate for an investor's goals. 

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Outperforming Benchmarks with Magnifi

It's no secret that the stock market has been on a roller coaster ride so far in 2020. From global trade tensions, to the COVID-19 pandemic, to record-setting unemployment and economic unrest at home in the U.S., there has been a lot to shake the markets this year, leaving them down more than 40% by late March.Read more

Using an Online Stock Screener to Build an ETF Portfolio

Wise investments are based on sound financial decisions. A lot of time and effort is spent looking for just the right investments to build out a portfolio, including a mix of stocks, bonds, ETFs, mutual funds and more. But that doesn't guarantee that an investor is aware of all of their potential choices at their disposal or make objective decisions. There are underlying psychological factors that play into all of this.

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A New Hurdle for Wealth and Asset Managers

Just a few decades ago, the investing landscape was fairly straightforward.

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Natural Gas May Keep on Rising

(September 2020)

Natural gas is red hot and rising (no pun intended ha), and just completed its largest ever monthly gain. August saw natural gas prices rise an eye-opening 51%. Despite inventories being 81% higher than last year, natural gas has been gaining because of increased demand. California, which is facing wildfires and blackouts, has had very high natural gas needs, driving up prices. The Energy Information Administration says that natural gas demand for power generation has been surging, with July seeing is largest ever single month increase for that purpose. That said, overall national demand in July was down because of decreased economic activity. Total supply has been cut significantly since pre-COVID, but inventories remain high.

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JP Morgan Says COVID to Boost ESG

(August 2020)

One of the few bright spots in the general bleakness of the COVID pandemic is likely to be ESG. At first dismissed for years, and even now occasionally looked down upon despite having $1 tn in assets, the ESG sector is getting fresh attention because of the pandemic. According to JP Morgan, COVID is serving as a catalyst for ESG because the pandemic is acting as a "wake-up call" about ecological risks. The banks says policymakers and investors are drawing parallels "between the unforeseen risks of a pandemic and issues such as climate change". The bank continued "Over the long run, COVID-19 could prove to be a major turning point for ESG investing, or strategies that consider a company‚'s environmental, social and governance performance". Some consider the focus on ESG odd because it runs counterintuitive to the prevailing understanding of investor behavior in times of crisis: a general focus on short-term and economic issues. Nonetheless, ESG has been performing very well on both a return basis and inflows basis.

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How Technology Can Help Overcome the Advisor's Dilemma

Typically, most surveys and studies segment financial advisors into two groups: investment managers (IMs) and their counterparts the client managers (CMs).

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Investing in Factor Funds

When it comes to investment portfolios, not everything is created equal. When it comes to assets in a factor-based portfolio, not all are weighted equally, and that is exactly the point. 

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