The latest Leading Economic Index has been released, offering investors a glimpse of the future, at least in the short term. Ataman Ozyildirim of The Conference Board shares his ideas on the pace of economic growth. If the pace slows in the coming months, it’s not necessarily bad for investors according to Russ Koesterich of BlackRock. He explains why in his recent commentary. The investors who need the most fiduciary protection are the elderly, according to Michael Finke. When people who have a vested interest in selling certain financial products can present themselves as Financial Advisors to those who may have dementia, he believes it’s a recipe for disaster. He describes the need for a fiduciary standard in ThinkAdvisor.
Conference Board Leading Economic Index (LEI) Remains in Growth Territory– “Widespread gains among the leading indicators continue to point to short-term growth,” said Ataman Ozyildirim, Economist at The Conference Board. “However, easing in the LEI’s six-month change suggests that we may be entering a period of more moderate expansion. With the February increase, the LEI remains in growth territory, but weakness in the industrial sector and business investment is holding economic growth back, despite improvements in labor markets and consumer confidence.” Read more…
Staying The Course As The Fed Signals Its Direction– Russ Koesterich, Chief Investment Strategist at BlackRock (the world largest money management firm), says that although growth is not materializing as expected, investors are taking solace in the fact that low inflation and the moderating economic growth may lead the Federal Reserve to increase interest rates at a slower, gentler pace. He believes the recent stock market gains can continue. Read more…
Lack Of Fiduciary Protection For Elderly Is ‘Insane’– “In the United States, we have a buyer-beware marketplace for products that are very often sold to older consumers,” said Finke, professor and director of retirement planning and living in the personal financial planning department at Texas Tech University. “This is insane,” he continued. “It’s insane that we allow people to sell products that are not necessarily in the best interest and hold themselves out as experts in the financial services industry.” As it currently stands, stock brokers may call themselves Financial Advisors even though they have a vested interest in selling certain investments to clients. Registered Investment Advisors, on the other hand, are held to a fiduciary standard which means the client’s interests must come first. Read more…
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller