• In it’s March 15 statement, the Fed said that, ‘in the near term the [Russian] invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity’. The Fed raised rates just .25% • Bonds rates have risen sharply this year and most of the yield curve is […] Read the full article…
In July, the board for the Oregon Public Employee Pension System (PERs) cut return assumptions from 7.2% to 6.9%. The 6.9% return assumption was well above that recommended by the investment consultants Meketa Investment Group and the actuary for PERs Millman. Meketa recommended a 6.6% assumption while Millman recommended 6.27%. According to NASRA, based on […] Read the full article…
This week, Schwab announced that it has completed Acquisition of TD Ameritrade • Schwab announced its plan to acquired TD Ameritrade for $22 billion last November. • Just prior to the announcement, Schwab cut trading commissions to zero on most trades. • Schwab announced that clients of each firm will continue to access accounts as […] Read the full article…
Q3 earnings season is nearly complete with 90% of the S&P companies having reported. For Q3, 75% have beaten their earnings forecast. Sales forecasts were exceeded in roughly 60% of the reports. Operating margins have been under some pressure. QTD, operating margins stand at 11.34% vs. last years 12.13%. Still, the Q3 2018 margin was […] Read the full article…
• Schwab and TD Ameritrade cut online trading fees to $0 for US stocks, ETFs & options • Competition in the brokerage industry is very strong • Consumers benefit even as the business model for the brokerage companies come under pressure. On Tuesday, Charles Schwab & Co. pushed fee competition to a new level indicating […] Read the full article…
• Schwab survey of 401(k) participants said they needed $1.7M. • ‘The people we surveyed have a realistic target for retirement, but many likely aren’t on track to get where they want to go’, According to Steve Anderson, President, Schwab Retirement Planning Services. • Your magic number can be very different from others based on […] Read the full article…
Today Reuters is reporting that the US received a cable from Beijing late last week with major edits to a 150-page draft trade agreement that has been under negotiations for months. Yesterday the US stock market dropped 1.7%, attributed by many to be as a result of the breakdown. The draft agreement includes seven chapters […] Read the full article…
Yesterday, the Federal Reserve held the Fed funds rate at their current level, between 2.25 and 2.5%. This after hiking rates 4 times last year. The Federal Open Market Committee (FOMC) minutes state, “In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future […] Read the full article…
For those interested in news and education on personal finance and investing topics, I have compiled a list of financial podcasts that I have found to be useful and entertaining. These podcasts are available via both Apple and Google Podcasts. For those new to podcasts, the following article from the Houston Chronicle may be helpful: […] Read the full article…
Today I’d like changes things up a bit and talk about the future. Specifically, I’d like to talk about artificial intelligence (AI). Like electricity, computers and the internet, AI is technology that is very disruptive. Disruptive technology is something so different that it can change the way a business operates and in the extreme can […] Read the full article…
The board that oversees Oregon’s Public Employees Retirement System (PERS) voted Friday to reduce the expected return assumption for the plan from 7.5% to 7.2%. The new rate assumption will take effect in 2019. Why is the Expected Return Assumption so Important? In a pension system, future payments are a liability of the fund. The […] Read the full article…
On February 3rd, President Trump signed a directive delaying new Department of Labor investment advice rules that would have gone into effect in April. The directive delays the implementation by 180 days and instructs the DOL to conduct a new ‘economic and legal analysis’ to evaluate the impact on investors and the industry. The rule […] Read the full article…
This week Morningstar updates its 529 plan ratings. This article focuses on the Oregon College Savings Plan. This plan enables investors to purchase funds directly and is managed by TIAA CREF. MFS also offers a set of funds that are sold through advisors. Morningstar continues to rate the Oregon plan as ‘Neutral’. The plan made […] Read the full article…
An article by Vanguard Research published in March, 2014 set out to quantify the potential value-add provided by financial advisors. In this article, I will summarize the key areas of value-add and explain Brightwood Venture’s investment process steps designed to capture this value. Before beginning, it is important to point out that measuring results can be […] Read the full article…