Closed-end funds are complicated investments that don't offer a lot of commission potential for financial advisors, which means they are largely ignored. But they can be good investments for sophisticated investors "looking for tax-exempt yield," notes advisor Erik Herzfeld, adding that municipal bond funds are especially attractive right now.
Retirees who dream of living on a beautiful island may be able to do so "for less than the cost of staying in the US," says Jennifer Stevens, International Living's executive editor. The expat publication offers a list of 11 affordable island destinations.
Ana Trujillo Limón of the Journal of Financial Planning offers tips for increasing diversity in the financial planning industry. She suggests being authentic, starting internship programs, casting a wide net when hiring and including everyone -- male and female -- in company initiatives.
The Financial Industry Regulatory Authority is changing its electronic reporting system to accommodate the Securities and Exchange Commission's revised income-reporting requirements. The SEC has simplified reporting by brokers and dealers and has updated requirements for annual audits.
Despite this week's midterm elections bringing a shift in the political landscape, analysts do not expect any change in course as the Federal Reserve prepares to release its policy statement today. While no interest rate changes are expected to be announced then, the Fed is still likely to move forward with a planned rate hike in December.
Luck is a far greater factor than ability in advisers' success rates, writes Mark Hulbert, who looks at a recent study by economics professor Bradford Cornell. "Even when you're fortunate enough to have picked an investment adviser with genuine ability, you may not be able or willing to follow that adviser for long enough to reduce the role played by luck to tolerable levels," Hulbert notes.
The private credit market is set to break through the $1 trillion threshold by 2020, says a report from an AIMA affiliate, the Alternative Credit Council, and law firm Dechert. Private credit managers' current assets under management stand at about $660 billion, two-thirds of which is split between pension funds and insurers.
The Cboe Volatility Index could decrease significantly if the fundamentals underpinning the Standard & Poor's 500 hold up, Macro Risk Advisors said. Todd Salamone of Schaeffer's Investment Research said he shares that view and notes that hedge funds have a slightly net-long position on VIX futures, while Credit Suisse strategist Mandy Xu sees the possibility for markets to fall and volatility to rise.
Emerging markets will surpass the US region by 2023 in terms of attractiveness for alternative investing, Preqin said in a report. "The key advantages for investing in emerging markets include higher yielding investments combined with lower financial gearing," Ragavan Sivanesarajah of Fortius Funds Management said in the report.
China will reduce the maximum duration of stock-trading halts after investors complained that companies are gaming the suspensions to stem decreases in their share prices.