From closed businesses, stock market crashes and income reductions (including an absolute stop of income for some), cash flow is being affected in ways unlike previous recessions. This makes the pandemic a real test of forced retirement.
First-quarter earnings season offered something for everyone. On the positive side, corporate America produced solid results outside of the COVID-19 pandemic trouble spots, which included retailers, travel-related businesses, and banks.
The interest rate aspect doesn’t yet receive the attention it deserves, likely because no one has any real-life experience with 0% rates in the U.S. The implications are not all positive. From a macro standpoint, 0% rates deprive the Federal Reserve of one of its most used economic tools.
Technology use during meetings went from being (arguably) optional to necessary in a matter of weeks for many communities, including financial advisors. As if learning new technology wasn’t tricky enough, may advisors have found themselves managing virtual client relationships with regularity for the first time.
Financially stressed workers may be tempted to withdraw funds from the 401(k) accounts. But employees should explore all alternatives prior to withdrawing from their 401(k) whether it’s during this pandemic or anytime.
Stocks took a sharp market downturn last week, leaving investors to wonder why. Stocks may have been due for a pullback after gains in late March through April and could potentially have further to fall.
The S&P 500 gained 12.82 percent during April, marking the best single month for the index since 1987. While this swift rebound was quite welcome for investors, very real risks to markets still remain—and there are several key factors that matter when determining the overall risk level.
When discussing the complexities of current markets with your clients, make sure you don’t .fall victim to the “curse of explaining.” Clients should always leave a meeting more informed than when they arrived, but this doesn’t mean you need to expound upon every background detail
In April, the S&P 500 Index had a historic rally off the March 23 lows, gaining more than 31% through April 29. The strength of the move, as well as internal data, suggests that a full retest of the March 23 lows may not be in the cards.
The US Bureau of Labor Statistics released its monthly employment report this morning, revealing that the domestic economy lost 20.5 million jobs in April. This is by far the largest contraction in the history of the data series, which goes back to 1939.
April was the month that stock markets rallied after an unprecedented drawdown. U.S. markets were up by double digits, international markets gained, and fixed income markets came back as well. What does May hold in store?
All around the country, firms and employees are taking things to the next level to provide value that doesn’t have anything to do with financial recommendations. Here is a list of the top five activities that firms are participating in to support their clients and their communities.
This week, the news has generally been good. The virus continues to come under control, with the growth rate slowing (although the case count has not declined as much). Some states are reopening their economies, which will give us valuable data and should help with employment.
Many clients may be feeling uncertain or panicked about their financial future. Communicating with them through social media and other online tools can provide reassurance and a source of stability.
One of the best known investment axioms is to “sell in May and go away.” This is largely because these six months have historically been some of the worst six months of the year. What will May 2020 bring?
For the first time, young advisors are facing the reality that they do not have the benefit of having guided clients through the Great Recession, the dot-com bubble, or any other notable contraction.
Headlines had oil selling at -$37.63 per barrel at close on Monday. The negative sign in front? Sellers had to pay buyers $37.63 to take the oil off their hands. Except this wasn’t the price of oil.
This earnings season will be unlike any other, as travel restrictions and lockdowns related to COVID-19 have impacted results dramatically. The biggest economic hits came in mid-March, however, and won’t be fully captured in first quarter results.
As the U.S. and the world continue to grapple with the COVID-19 pandemic and the economic fallout, advisors must prepare to handle more unique situations and a reduction in scalability across their practices.
What makes this recession unique is the government intentionally brought it on, with the chances for an economic bounce back later this year high if the virus is contained. If this recession becomes one of the shortest on record, as we expect, stocks may enjoy better times ahead.
The difference between now and the start of the pandemic is that we can at least see the end. We can see that we have flattened the curve, and we can reasonably project when the pandemic will be brought under control. What does that mean for the markets and the economy in general?
Our entire way of life and how we operate on a daily basis has been turned upside down and inside out. For many people, they have been able to adapt to the new reality, but for many more, the sudden, drastic change to how we function is causing stress.
Stock market volatility has remained high as investors continue to closely track COVID-19 containment efforts while getting a glimpse into how damaging travel restrictions, stay-at-home orders, and social distancing have been on the US economy.
March was a really tough month. After a terrible February, all major stock indices were down by double digits, leading to significant declines for the quarter as a whole. All of the major indices ended the month and quarter below their 200-day moving averages, often a sign of more trouble ahead.
To ensure clients have immediate means to cover unforeseen costs, advisors should consider the merits of personal lines of credit as an alternative to standard emergency fund plans. Here’s how advisors can manage the process.
The COVID-19 pandemic continues to significantly and negatively impact the global economy, making this crisis one of the worst we have ever faced. In addition to the tragic human toll, containment measures have further elevated near-term uncertainty for investors.
n the past, logistical and legal issues hindered advisors who wanted to work with high-income international clients – that is, noncitizen, nonresident clients – investing in the U.S., but recent changes have opened up this significant potential market to American agents.
As expected, the initial jobless claims report—the one that shows how many people have been laid off and are newly applying for unemployment assistance—was a shocker this morning. Three million people lost their jobs and applied for unemployment last week.
People spend most of their college career refining networking skills, perfecting their resume, and completing mock interviews. But once they start their career, professional development can take a back seat to day-to-day work and life responsibilities.
Just mentioning an annuity in financial planning can have a polarizing effect. There are those who don’t believe in annuities to solve any problem other than guaranteed lifetime income, and there are even more who actually don’t understand the many benefits of FIAs.
In today’s environment, it’s easy to live in a state of panic and fear. Especially when you continually hear “Dow down 2000 points,” “We are in a recession,” “stimulus package,” “rising cases and deaths.” But focusing on the things you know will help you guide your clients out of this uncertain economic and political time.
Clients want human interaction in this time of social isolation, and they need to have their advisors communicate with them. Brock Jolly, financial advisor at Veritas Financial, shared some tips for communicating with clients during a webinar held Monday for members of the National Association of Insurance and Financial Advisors.
COVID-19 has left businesses in uncharted waters. It is often insurance that carries businesses through these waters. But policyholders need to know where to look for this life raft, and how to navigate these murky waters.
There is a tremendous amount of information available about the coronavirus pandemic. But what’s missing is a framework for that information that would help clarify the big picture as it related to financial services.
As seniors read the news and contemplate how to stop the bleeding of their hard-earned savings and wonder what to start doing to preserve what they have left while ensuing their ability to capture opportunities after the market recovers (and it will), what are seniors being told to do?
There are plenty of reasons to believe stabilization of the stock market might come soon. First, from a valuation perspective, the stock market is getting close to its cheapest level since about 2016. Second, looking at the data, we appear to be approaching some major resistance levels.
As the coronavirus continues to scare global markets, it would be easy forget that the current bull market started 11 years ago today. Based on investing fundamentals, analysts continue to believe we’ll see a resumption of economic growth and a continuation of this bull market into at least 2021, but worries are building.
Any advisor can gain significant advantages by going independent. By charting one’s own course, advisors have the ability to shape their businesses to fit their own vision, not that of a large company. Wayne Minich shares five decades of experience as an independent advisor.
It is important that financial planning firms are up to date on current technology tools to improve accuracy and efficiency so they can focus on what helps clients change behavior most – involvement, connection, and trust. Here are six tech tools for young advisors to try.
As the popularity of fee-based and fee-only financial advice continues to rise, many advisors are making the switch – even in nations like the U.S., which don’t require fee-only practices. But this transition can go awry if not well-planned.
A risk-off sentiment driven by the spread of the coronavirus from China spooked investors to start 2020, leading to modest declines for equity markets at month-end. Markets have since recovered and moved back to new highs, but that does not necessarily mean the risks have disappeared.
Staying involved in new innovation and up to date on current trends is extremely important to being a successful financial planner. Alexandria Cole-Davis discusses some technology resources for young advisors.
Viewing your practice as an “assembly line” allows you to pursue larger corporate clients and generate more business. You can achieve this by cultivating a workflow based on each employee’s natural skillset and grasping the potential of a more streamlined, efficient business model.
The Super Bowl Indicator suggests stocks rise for the full year when the Super Bowl winner has come from the original National Football League (now the NFC), but when an original American Football League (now the AFC) team has won, stocks have fallen.
Wall Street has often called this the most hated bull market in history, and for good reason. Even though this bull market is the longest on record, it has been the third-slowest expansion since 1950 based on annualized growth. Are there reasons for concern in the markets?
Advisor News premieres a new feature today bringing you financial planning as seen and lived by millennial advisors. Our NexGen feature is being brought to you in partnership with the Financial Planning Association. We plan to publish NexGen bimonthly on Wednesdays. Our kickoff column is written by Ian Harvey of Bridgewater Advisors in New York City.
