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1. What Are the Risks for the Second Half?
Heading into the second half of 2024, we see reasons for continued market optimism. However, with equity markets back in overbought territory and the potential for increased headline risks there are reasons for potential market consolidation in the near-term. As such, we outline five potential catalysts for markets during the second half of the year. — Anastasia Amoroso, Peter Repetto and Nicholas Weaver
2. Here’s Why People Don’t Trust Financial Advisors
If you’re struggling to build trust with prospects and clients, then I have some harsh news for you. Whether you’d like to admit it or not, the reason you can’t build trust is because you don’t trust others. The universe has a tendency to attract similar people as you. And if you’re constantly looking for discounts, shortchanging other businesses, and using a credit card you know will decline, then, well, that’s the exact type of people your business will attract. — James Pollard
3. A Rate Cut In July?
The market remains overbought short-term, but the recent rally is close to flipping the short-term MACD “sell signal.” Such would suggest that while the overbought condition could limit the upside, the market will likely try to climb higher over the next two weeks. Continue to manage portfolio risk accordingly, but the bullish trend remains intact. — Lance Roberts
4. Your Unique Status Is On The Decline
Here’s a sobering truth you’re probably seeing more every day: your unique status, as an advisor, is declining at a rapid pace. You most likely experience that when you hear this question in your initial meeting with a new prospect: “What makes you different than other advisors?”. — Ari Galper
5. How to Say No (Without Being Offensive)
How can you refuse a request without offending someone or burning bridges? Years ago, I wrote an article about financial professionals and their involvement with nonprofit organizations. The editor and I were talking about board memberships. He remarked “Accountants are often invited to join the board because the organization wants their taxes done for free.” Another situation financial professionals encounter is getting asked for financial contributions. In my opinion, when someone learns you are a financial advisor, they assume you are either wealthy or on your way to being wealthy. How can you manage these requests? — Bryce Sanders
6. Volatility: The Calm Before the Storm?
Volatility, the tendency of prices to fluctuate, is not just an academic construct – there are also products such as ETFs based on it. Volatility has recently been quite low by historical standards. Can we now expect an increase in volatility? Let’s take a look at its seasonal pattern. — Dimitri Speck
7. Model Portfolios for Modern Investing With Kunal Shah
In this podcast, Doug and Kunal explore the rising interest in alternative investments, emphasizing the importance of education, data-driven model portfolios, and technological advancements to simplify and optimize advisor investment strategies. — Power Your Advice
8. Why Fears of a Speculative Bubble Might Be Overblown
The S&P 500, Nasdaq and Russell 3000 closely tracked one another through mid-May of this year. But that changed as investors perceived that the Federal Reserve might be adopting a more dovish monetary course despite previous statements to the contrary. This was an inflection point for aggressive growth segments of the stock market, most notably Artificial Intelligence. The Nasdaq mounted an advance that distinguished its performance from the other major indices. As this trend intensified, some equated the action to the late 1990s period when technology stocks raced higher following the collapse of the long-term hedge fund and the swift efforts by the Fed to calm the markets by injecting liquidity. This eventually spawned the historic technology bubble, which some fret soon could be repeated in the prevailing market climate. — Eugene Peroni
9. Advisors Are Reaping AI Rewards
At the investment level, artificial intelligence (AI) was one of the most prominent (and rewarding) themes in the first of 2024. In terms of prominence, expect more of the same in the second half, but there’s more to the story. While so many clients and retail investors are enthralled AI-related equities and funds, this technological megatrend has well-documented implications for advisors practices, most of which extend beyond merely allocating to AI within client portfolios. Fortunately, the “robots are coming for my job” phase appears to be in the rear view mirror and largely unfounded. — Todd Shriber
10. Why Clients Seek Second Opinions in Financial Planning and How to Prevent It
If you’ve been in this business long enough, you’re bound to encounter a client who wants to get a second opinion on some of your advice or a strategy you’ve developed. There’s no sugar-coating it—that can feel like a low blow—questioning your expertise and even your integrity. While it might feel like a vote of no confidence, it’s often a symptom of a deeper need. Understanding these reasons and fostering a solid client relationship can help advisors minimize the need for external validation. — Don Connelly
11. The Market Is Very Extended but It Can Stay That Way
A reader asked us how concerned we are about the market’s extension from crucial moving averages. The short answer is we are. But that doesn’t mean we are moving our equity holdings to cash. We continue to hold our equity positions for two reasons but we remain vigilant. First, the S&P 500 is doing great, but only because of a small handful of the largest-cap stocks. This imbalance is getting extreme. However, the condition doesn’t require a sharp downturn to correct itself. Simply, the other 480 or so stocks that have been underperforming can outperform without the market declining. — Michael Lebowitz