Some financial advisors believe clients under age 30 should put their entire retirement portfolios in stocks and not own any bonds. They argue that the superior returns of stocks and the threat of rising inflation make holding bonds not worth the risk for the limited protection they provide.
Concerns over the health of the global economy have caused hedge funds to liquidate their bullish oil positions faster than they did in Q4 2018, selling a total of 290 million barrels of petroleum in the last six weeks. "What happens next depends critically on the trajectory for the global economy and how the Federal Reserve and other major central banks react," writes John Kemp.
The Commodity Futures Trading Commission's recent no-action relief will ensure compression-triggered replacement trades are not caught up in the non-cleared margin rules, bringing the US closer to alignment with the EU's treatment of amended legacy instruments.
Brexit is causing further complications for developing a consolidated tape data stream in Europe that could result in the need for a UK consolidated tape provider as well, says Kaizen's Chris Machin. "If there are multiple CTPs there will be competition and that will create a cost component," says Machin.
The investing landscape has evolved, and it is critical for advisors to be able to communicate with clients about opportunities for portfolio diversification, says Anthony Chereso, president and CEO of the Institute for Portfolio Alternatives. "It's prudent that today's RIA be familiar with alternative investment strategies outside of traditional equities when looking to diversify with real assets," he says.
The unlisted closed-end fund market, including interval and tender-offer funds, reached $53 billion in assets under management at the end of 2018, according to a report from UMB Fund Services. Since 2014, interval funds have outpaced tender-offer funds in asset growth, reaching 51.5% of the unlisted closed-end fund market at the end of last year.
Money from business or stock sales is expected to account for a significant portion of investment in Opportunity Zones, writes Timothy Witt, director of research and due diligence officer at Concorde. He shares 10 factors to consider when evaluating the suitability of Opportunity Zone investments as compared to other options.
Gemstone Communities, which manages and owns manufactured housing communities, is collaborating with newly launched Inland Venture Partners. Inland Venture Partners targets accredited investors interested in private equity real estate by providing closed-end funds.
Lawyers from Skadden, Arps, Slate, Meagher & Flom break down a second set of rules proposed by the IRS and the Treasury Department regarding Opportunity Zones. "Like the initial proposed regulations, the new proposed regulations provide thoughtful, pragmatic, policy-oriented guidance on key issues and can be expected to encourage the formation and capitalization of OZ funds," they write.