Wealth Management
Top stories summarized by our editors
7/16/2018

Macro hedge funds have seen success in their increasing short positions on the Chinese yuan, but they say such activity is for various reasons and not because an economic crash in China is seen as likely. Short-selling can be costly, as the practice has left funds exposed to sharp rises in overnight funding costs within the past year.

Full Story:
Reuters
7/16/2018

An eVestment report shows slightly more than half of reporting hedge fund strategies had returns averaging 5.3% in the first half of 2018, while the rest were down 5.3% on average. Overall returns were at negative 0.51% in June, although returns year-to-date are positive overall at 0.16%, the report says.

Full Story:
Hedgeweek (London)
7/16/2018

Hedge funds are bearish on New Zealand's currency, with data from the Commodity Futures Trading Commission showing that they have increased net-short positions for three consecutive weeks. The country is reporting second-quarter inflation figures on Tuesday, and economists expect to see an annual rate of 1.6%.

7/16/2018

Global regulators have laid out a framework for keeping tabs on potential risks in the market for cryptocurrency assets. "The use of leverage, and financial institution exposures to crypto-asset markets are important metrics of transmission of crypto-asset risks to the broader financial system," the Financial Stability Board noted.

Full Story:
Reuters
More Summaries:
Financial Stability Board
7/16/2018

People planning for long-term-care expenses frequently overlook annuities as a funding option, according to Maryalene LaPonsie. The overall costs of annuities may be less than the premiums most consumers would pay for long-term-care insurance, she writes.

7/16/2018

House Ways and Means Committee Chairman Kevin Brady, R-Texas, said tariffs President Donald Trump has imposed on China may undercut the US economy and diminish the benefits of tax cuts. Brady said Trump should meet with Chinese President Xi Jinping to develop less punitive trade policies.

Full Story:
Fox Business, Reuters
More Summaries:
Donald Trump, Kevin Brady, Xi Jinping
7/16/2018

Dave Haviland, managing partner of Beaumont Capital Management, says many advisors are unaware of coming changes to influential stock indexes. S&P Global Ratings and MSCI are set to implement major changes to the Global Industry Classification Standard in September.

7/16/2018

Connecting clients with each other can help advisors strengthen their relationships with those clients, write Stephen Boswell and Kevin Nichols of the Oechsli Institute. They suggest advisors bring together clients they think would get along by holding intimate events, such as dinner parties or golf outings, or attend community events together.

Full Story:
WealthManagement
7/16/2018

Advisors say they are hearing questions from clients about the impact of tariffs on investment holdings, and this is contributing to a decline in their risk appetite. According to Financial Planning's Retirement Advisor Confidence Index, June marked the fifth month in a row that client risk tolerance registered in negative territory.

More Summaries:
Financial Planning
7/16/2018

A client who appears to have a spending problem might actually have a trust issue with their advisor, writes certified financial planner Michael Kitces of Pinnacle Advisory Group. He discusses why clients may conceal the fact they have other assets being managed by another advisor and how he deals with it in his own practice.