The New Non-Transparent ETF Is Coming!

Except it can’t be called an ETF. The proper terminology is exchange traded mutual fund and based on what we are hearing/reading this seems like it would be a tough sell. They won’t actually trade throughout the day but you can place an order anytime with the execution price being some number above the NAV is you’re a buyer or some number below the NAV if you’re a seller. And there are other aspects as confusing and opaque as that last sentence. AdvisorShares has good writeup on the subject. It is worth learning about as this feels like some sort of evolutionary step, I can’t imagine this is what non-transparent funds will be forever going forward….but maybe? From the post; On the negative side, as far as I can tell, an investor will never actually buy at net asset value (NAV). It appears there will always be a premium to buy and a discount to sell (which is why they call it “NAV-based”). The Wall Street Journal also has a short article with the title SEC to Eaton Vance: No ETF For You!   College basketball starts next week. The 24 hours of games will be on Tuesday November...

Weekly Market Update

This week’s market update is posted at Alpha Baskets and includes the following; The President started out trying to strike a conciliatory tone but Barron’s DC Current column keyed in on his comment that “there are going to be some ideas that they’ve (the Republicans) got that they believe will improve the economy or create jobs that, from my perspective, aren’t going to help middle-class families improve their economic situation, so I probably won’t support theirs.” Please click through to read the entire...

The Robos Are Coming!

My latest at Alpha Baskets is titled Will Robo Advisors Kill The Financial Services Industry? This is important to follow as an advisor because of the threat to sustaining your practice and to individuals for their own interests or blog readers who as I have said before are likely the go to person for finance questions in their circles of influence. From the post; The threat that Generation X and the Millennials are going to be financially worse off than their parents is also a threat to the traditional financial services industry; new prospective clients will have smaller accounts which means less revenue. There is no way to know absolutely whether this generational effect will play out but with jobs harder to come by and younger people having larger debt burdens after college it seems plausible and advisors should be paying attention to this and figuring out a strategy to overcome these threats. Relying on wealth transference may not be a good idea either as more and more boomers are likely to struggle with their retirements. Please click through to read the entire...

The BoJ Says ‘Ni’ To Deflation

The weekly market update is posted at Alpha Baskets and includes the following; Two weeks ago we looked at the almost 8% decline that had occurred in just a few weeks as being a fast decline noting the tendency for fast declines to snap back; that slow declines have historically been the bigger threat with 2000 and 2007 both being classic examples of slow declines that have marked the start of bear markets. The idea behind this concept is that emotional rushes don’t usually mark major market turns. Please click through to read the entire update. Red Sox at Giants June...