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1. A Pull-Back From the Pull-Forward? What To Watch Out for in 2024
At the end of last year the big topic in the market was pulling forward returns. So the question is will there be a pull-back from the pull-forward and what are we watching out for in 2024? First let me say Happy New Year to everyone. As we start the new year, it's worth reminding ourselves of what the collective best guesses are for the year in markets. In other words, the consensus expectations. We often get the question, “What are you watching out for in markets?” So let's discuss that to start the year. — Jim Caron
2. There Aren’t Enough Advisors
Advisors, I’ve got good news for you. You’re not like lawyers, of whom many jokes say there are too many. The opposite is true for advisors. There aren’t enough. Data indicate that the number of registered investment advisors in the U.S. was flat in 2023 relative to the year earlier figure. That’s an ominous statistic when considering many advisors are baby boomers, meaning, as is the case with many of their clients, their inching closer to retirement. Yes, many advisors have succession plans in place or will sell their practices. — Todd Shriber
3. Will Inflation Repeat the 1970s Rollercoaster?
Sustained levels of high inflation are poor for stock and bond returns. Even more worrying, high inflation is insidious for the financial well-being and morale of the nation’s citizens. As divided as the country is today, sustained high inflation could worsen it. To properly assess whether a repeat of 70s-era inflation is possible, we must first understand why inflation was rampant during that period. With that knowledge, we can compare today with the prior episode to appreciate whether Apollo’s chart is a road map for the future or a spurious correlation. — Michael Lebowitz
4. Navigating a New Market Regime: Stepping Cautiously Into 2024 To Seize New Opportunities
Last year was a humbling experience for investors and asset managers, primarily as central banks continued their seemingly ever-lasting push against inflationary pressure that stemmed from the global pandemic that’s now nearly four years in the rear-view. Contemptuous attitudes towards central banks' flurry of monetary interest rate hikes left many seasoned professionals from pulling their hands out of the pot and rushing to park their cash in inflation-buoyant investment. — Jacob Wolinsky
5. Rise in Alternative Investments Fueled by Client Interest
Over the past decade, the amount of capital invested in private markets has increased dramatically, nearly tripling from $4.5 trillion in 2012 to $12.4 trillion by year end 2022. Historically, the majority of this capital has been from institutional investors. Bain & Company’s 2023 report on private equity highlights that just 5% of assets under management (AUM) in alternative investments is held by individual investors. — iCapital
6. The Diminishing Impact Of The January Effect
The January effect, named for the market anomaly where stock returns in January are typically higher than in other months, has been a subject of interest since it was first documented in 1942. Traditionally, this effect has been attributed to tax-loss harvesting at the end of the year, where investors dump their laggards to offset capital gains tax liabilities, leading to a December selloff. This is followed by a buying spree in January, as investors repurchase stocks, boosting demand and prices. — Frank Holmes
7. Five Industries That Are Reviving American Innovation
Flying cars are the poster child for all the innovations we didn’t get because they got too expensive to make stuff. To quote PayPal (PYPL) and Palantir (PLTR) co-founder Peter Thiel, "We wanted flying cars, but all we got was 140 characters?" Before the 1970s, America pumped out bigger, faster, more powerful machines. Cheap energy was the key ingredient behind American muscle cars… jet engines that allowed us to cruise across the Atlantic... spaceships… and new power-hungry appliances. — Stephen McBride
8. Is It Too Late To Start a Digital Transformation?
Digital transformation has been a buzzword for years. Most companies and financial advisors realize the benefits of updating and transitioning to digital solutions, but a total transformation can seem daunting. As technology evolves at a breakneck pace, the distance between digital leaders and firms that haven’t embarked on their own transformation initiatives grows. Many firms feel it’s too late to even get started. — John Kotsiantos
9. The U.S. Avoided Recession Last Year. What Comes Next?
Entering 2023, more than 85% of economists expected a U.S. recession before year’s end. They had good reason: The yield curve, usually a harbinger of recession, inverted in July 2022, when rates for two-year Treasury bonds surpassed those for 10-year bonds. Meanwhile, on Main Street, Google searches for the term “recession” hit the highest mark in history. — Mark Casey, Will Robbins and Darrell Spence
10 Navigating the Interest-Rate Descent
The steepest interest-rate-hiking cycle in decades has set global economic activity on a course that remains difficult to map, making it especially important to respect risks and to look to build portfolios capable of performing well in a variety of conditions. After major economies showed surprising resilience in 2023, we anticipate a downshift toward stagnation or mild contraction in 2024. The standout strength of the U.S. is likely to fade over our six- to 12-month cyclical horizon. Countries with more rate-sensitive markets will likely slow more markedly. — Tiffany Wilding and Andrew Balls
11. 7 Steps in Selecting the Right Profit Increase Strategies for Your Advisory
In the highly competitive landscape of financial advisory, the pursuit of profitability is a constant challenge. As financial markets evolve and client expectations shift, financial advisors must adapt and implement effective strategies to not only sustain their businesses but also to thrive. This article explores seven crucial steps to help financial advisors select the right profit-increase strategies, ensuring long-term success and client satisfaction. — Susan Danzig