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1. Buffett Indicator Says Markets Are Going To Crash?
The Buffett Indicator is a valuation measure that compares the stock market’s capitalization to the Gross Domestic Product. A favorite of Warren Buffett, the indicator sits shy of 2.44 times market-cap to GDP. That number doesn’t mean much on its own, but it’s striking when placed in a historical context. Even after the recent fall in markets, the ratio is still one of the highest on record, north of the 2.11 level recorded during the dot-com bubble of 2000, and considerably elevated compared to the average since 1950. — Lance Roberts
2. Jerome Powell Is Losing Support
JEROME POWELL IS ABOUT TO BECOME the most politicized Fed Chairman since Paul Volcker, as exasperated politicians — mostly Democrats — increasingly criticize his bold rate hikes. LOOKING FOR A SCAPEGOAT: We’ve talked with nervous Democrats who think Powell has over-done the restraint and is too willing to accept a recession, if necessary, to curb inflation. “It could take two years or longer to get inflation back to 2%,” said one Democrat who worries that his constituents will have little patience for persistently high rates. — Greg Valliere
3. Has Goldman Sachs Lost Its Marbles?
I stumbled over a detailed analysis of Goldman Sachs’ efforts to be a fintech the other day. Written by Mario Gabriele, Founder and Editor of The Generalist, the lengthy text is a great breakdown of how Goldman pivoted from an investment bank to launch a consumer bank over the past few years. I’ve picked a few key paragraphs from the text, but feel free to read the whole thing. It’s worth it if you’re interested. — Chris Skinner
4. The ROI of Social Media Revealed
It does not matter if you know nobody in this company, they could even be using a competitive solution. But by the time I've walked you around, they know you, they know you as a human, they are aware that you work for a company and you didn't even need to pitch to them. Now it's time to start moving some of those conversations to commercial interaction. — Timothy Hughes
5. The Mystery Surrounding Fees Is What Bothers Clients
For many advisors, discussing fees with their clients is about as comfortable as going to the dentist. They know they have to do it, but they’d much rather be doing something else. Why is that? Is it because they don’t feel their fees are justified? Are they afraid the client will balk at them? Are they concerned they will ruin the rapport they built up to that point? — Don Connelly
6. Can Clients Gain Income in an Unsettled Stock Market?
Many people have never seen a down stock market. Turn on the financial news and you hear gloomy predictions about a market correction just around the corner. Interest rates have been rising, but will they continue and for how long remains a mystery. No one can accurately predict the future. What can a client needing to generate income from their investments do? — Bryce Sanders
7. 2 Top Electric Vehicle Stocks Investors Can Buy In 2022
Electric vehicles or EVs are battery-powered automobiles that don’t require fuels such as gasoline or diesel. Several countries globally aim to incentivize residents to purchase EVs due to concerns over climate change. So, the demand for EVs is all set to explode all over the world in the upcoming decade, making these stocks top bets for long-term growth investors. — Finscreener
8. Millionaire Actions in Volatile Markets
The stock market has been extremely volatile in 2022, taking a rollercoaster ride of ups and downs resulting in losses over 15 percent. While in theory most investors understand that the stock market has ups and downs, it is challenging to keep that in mind during the “down” times. Do higher levels of wealth make an investor immune to the concerns of the volatile stock market? Are investors making any changes to their investments because of the volatility? — Catherine McBreen
9. Focus on the Mission Not the Money
I was on the phone with an adviser recently and they were struggling. They’d lost their mojo. I asked a few questions. They told me that if they just carried on as they were, at age 50, they’d hit their personal financial goals at age 55. At that point, they’d be able to stop work and retire. This is the same adviser who has the most amazing niche business. The same adviser, who when they talk about their niche and the clients they serve, you get goosebumps. Why? — Brett Davidson
10. This Fast-Growing Ethnic Group Wants Advisors
They’re fastest-growing ethnic group in the U.S., one that’s increasingly educated and upwardly mobile. As such, Latinos make for a desirable, potentially lucrative client base for registered investment advisors (RIAs). Problem is many advisors don’t know where to start in terms of cultivating relationships with prospective Latino clients. Unfortunately, some advisors don’t want to because they’re fee-based model encourage focusing on high- and ultra-high net worth clients. Those are labels that don’t apply to many Latinos. Yet and “yet” is the operative word here. — Todd Shriber
11. Has Innovation Bottomed? Is It Cheap Yet?
Innovation was the market darling thematic for many years leading up to COVID. The pandemic turbo-charged returns for innovation as the stay-at-home beneficiaries did phenomenally well. However, since the first quarter of 2021 innovation has struggled as a thematic strategy. It appears to us that innovation made a low in May and has been slowly regaining some ground. — Steven Vannelli