ACTIONABLE ADVICE FOR FINANCIAL ADVISORS: Newsletters and Commentaries Focused on Investment Strategy

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Meeting Retirement Goals with Dimensional’s Target-Date Retirement Income Funds

by Wade Pfau

Traditional target-date funds aren’t designed to meet a spending objective; their focus is on growing nominal account balances while also managing account balance volatility. However, a stable account balance does not necessarily translate to stable income. Dimensional Fund Advisors’ new target-date retirement income funds bridge this divide by providing a target-date fund that uses a more complete risk management framework that manages volatility of expected affordable retirement spending.

How Mistakes Can Improve Client Satisfaction

by Dan Richards

When it comes to mistakes, there’s good news and bad news. The bad news is that no matter how hard you try, if you run a large practice a certain number of mistakes is inevitable. The good news: Provided that problems are relatively minor and are one-off in nature, the right process to handle mistakes will actually strengthen client loyalty and improve satisfaction.

Overcoming Objections to Evidence-Based Persuasion

by Dan Solin

“Evidence-based persuasion” is the methodology I created for maximizing the number of prospects you can convert into clients. You’d think advisors would embrace a process supported by overwhelming evidence. While many advisors have done so, I still meet pockets of resistance. Here are three most common objections, followed by my rejoinders.

Why Invest In Low-Yielding Muni Bonds

by Stan and Hildy Richelson

A lead article in the June 6 Wall Street Journal titled “Latest Hot Buy: Municipal Bonds” explained why muni bonds are currently such a desirable asset class. We summarize this important article and provide our comments.

Austan Goolsbee on the Fed’s Broken Forecasting Model

by Justin Kermond

Austan Goolsbee is optimistic that the long-run prospects for the U.S. economy are outstanding due to the unbounded strength of our human capital, innovation and entrepreneurialism. However, Goolsbee warned that the next 12-18 months will be bumpy and the illusive V-shaped recovery will not happen because the U.S. Federal Reserve’s forecasting model is broken.

A Low-Cost Tactically Managed ETF Solution

by Robert Huebscher

Sage Advisory Services was founded in 1996 by Robert G. Smith, III and Mark C. MacQueen with a simple mission: to better meet the unique investment management needs of institutions and individuals through industry-leading analytical services, innovative investment solutions and an unwavering focus on risk management. I spoke with Bob Smith about Sage’s strategies and how they are helping advisors achieve their clients’ investment objectives.

Justifying Fees on Active Management

by Beverly Flaxington

How can advisors justify the fees for active management?

Recruiter Spotlight

by Various

Visit our recruiter spotlight to hear from our monthly sponsors about opportunities available for advisors in the industry.

The Advisor Alpha: How Much Are You Worth to Clients?

by Frank Serebin

According to Vanguard, advisors can potentially add 3% each year to client returns. That’s after fees, expenses and taxes. So how can you add 3% more each year than the average advisor?

How to Avoid Making the Portfolio Assumptions that Harm Clients

by Scott MacKillop

In response to my previous article, The Portfolio Management Assumptions That Harm Clients, Bob Veres commented that I didn’t offer any solutions. This article is my attempt at redemption.

Recent Commentaries

Apple Falls To Earth

by Phil Segner of Leuthold Weeden Capital Management

It was just over a year ago that we celebrated Apple’s re-admittance to the esteemed Four Percent Club following a two-year hiatus. We speculated that given the brief membership of past Four Percenters and the law of large numbers, Apple was doomed to fall back to Earth. From the dizzying heights of a $775 billon valuation on February 23rd, 2015, the value of Apple declined by the equivalent of one General Electric or two IBMs. Poof, gone. Looking back at the performance history of past Four Percenters, we probably shouldn’t be surprised by Apple’s rapid descent.

On My Radar: Brexit!

by Steve Blumenthal of CMG Capital Management Group

Brexit!  The world markets are in shock.  What’s next?

Brexit’s Blow To Globalization

by Carmen Reinhart of Project Syndicate

Less than a decade after the 2008 financial crisis dealt a major blow to globalization, Brexit has just delivered another. With the world already facing anemic growth and low investment, any adequate damage-control plan must include prompt resolution of the new rules of the game for Britain and its relationship with the EU.

Business Startups Flock To Just 20 US Counties - Here's Why

by Gary Halbert of Halbert Wealth Management

Most of you reading this are aware that new business startups have fallen below business closures since 2008. Since records have been kept, new business startups outnumbered business closures each year, often by wide margins. But not so since the Great Recession.

Britons Vote in Favor of Brexit

by Ben Rozin of Manning & Napier

Recently, citizens of the United Kingdom (UK) collectively voted in favor of leaving the European Union (EU). Now begins the process of negotiating a withdrawal accord and the terms of the UK’s relationship with the political-economic bloc, including 80,000 pages of EU trade agreements. This will likely take a minimum of two years, but the exact timing ultimately depends on how the negotiations play out. During this time, Britain will continue to abide by EU treaties and laws, but will not take part in any decision-making on behalf of the union. We outline what it means from an investment perspective, short-term, and what we can expect to see in the future.

An Investor Guide to Brexit Implications

by Dr. Brian Jacobsen, CFA, CFP of Wells Fargo Asset Management

Dr. Brian Jacobsen explains the Brexit vote’s wide-ranging fallout, from the economic implications to investment portfolio considerations.

Will Brexit Crash the Stock Market?

by Brad McMillan of Commonwealth Financial Network

After a difficult two days, there’s a serious question on many investors’ minds: Is this the big one, the next crash? It's a reasonable concern. After all, haven’t we been hearing about all the damage Brexit could do? And haven’t we sort of been down this road before, with the Greek crisis in 2011?

Brexit Reaction: Keep Calm and Carry On

by Scott Minerd of Guggenheim Partners

In the long run there are certainly issues to be sorted through, but in the short run Brexit is a buying opportunity.

Bet You Didn't See That Coming…

by Blaine Rollins of 361 Capital

In a pickle is where the financial world now finds itself. The markets do not like uncertainty and they do not like volatility. With the U.K. voting to leave the European Union (EU) on Friday, we now have both uncertainty and volatility. As the world wonders if Brexit will lead to other EU members following the same path, we have significant confusion on so many items. Who will the new leaders of the U.K. be?

Recent dshort Posts

S&P 500 Snapshot: Back in the Green Year-to-Date

On global basis, equity markets have essentially discounted last week's Brexit vote. Today's rally, to one decimal place, put the Nikkei up 1.6%, the DAX 1.8%, the CAC 2.6% and the FTSE 3.6%. Our benchmark S&P 500 rose 1.7% today, just a tad off its 1.82% intraday high shortly before the close. The index is now back in the green year-to-date, up 1.31%.

Moving Averages: Month-End Preview

Here is an advance preview of the monthly moving averages we track after the close of the last business day of the month. At this point, before the close on the last day of the month, all three S&P 500 strategies are signaling "invested" — unchanged from last month's triple "invested" signal. Four of five Ivy Portfolio ETFs — Vanguard Total Stock Market ETF (VTI), iShares' Barclays 7-10 Year Treasury (IEF), PowerShares DB (DBC) and Vanguard REIT Index ETF (VNQ), — are signaling "invested", changed from last month's all invested signal.

Regional Fed Manufacturing Overview: June Decline

The Federal Reserve System consists of twelve Federal Reserve Banks, twenty five branches, and the Board of Governors in Washington, D.C. Each bank serves a larger regional district. Five out of the twelve Federal Reserve Regional Districts currently publish monthly data on regional manufacturing: Dallas, Kansas City, New York, Richmond, and Philadelphia. The average of the five for June is -3.1, down from last month's -1.2.

Two Measures of Inflation and Fed Policy

The BEA's Personal Consumption Expenditures Chain-type Price Index for May, released today, shows that core remains inflation below the Federal Reserve's 2% long-term target at 1.62%, The latest YoY Core PCE index (less Food and Energy) came in at 1.62%, virtually unchanged from the previous month's downwardly revised 1.58% and down from its February reading of 1.72%, which was the highest since late 2012. The most recent Core Consumer Price Index release, also data through May, is higher at 2.24%. The Fed is on record as using Core PCE data for its primary inflation gauge.

Pending Home Sales Declined in May, Disappoint Expectations

Today the National Association of Realtors released the May data for their Pending Home Sales Index. According to the National Association of Realtors®, "After steadily increasing for three months, pending home sales let up in May and declined year-over-year for the first time in almost two years."

May Real Disposable Income Per Capita Up 0.18%, 0.02% in Real Terms

With the release of today's report on May Personal Incomes and Outlays we can now take a closer look at "Real" Disposable Personal Income Per Capita.

At two decimal places, the nominal 0.18% month-over-month increase in disposable income comes in at 0.02% when we adjust for inflation. The year-over-year metrics are 3.33% nominal and 2.38% real.

Minimal Change in the May PCE Price Index

The Personal Income and Outlays report for May was published this morning by the Bureau of Economic Analysis. The latest Headline PCE price index year-over-year (YoY) rate is 0.93%, down from the previous month's revised 1.07% (previously 1.09%). The latest YoY Core PCE index (less Food and Energy) came in at 1.62%, virtually changed from the previous month's revised 1.58%.