Economic Update 10-19-2015
LSA will be making model portfolio revisions today. Below is a list of all round one models that are scheduled to trade October 16, 2015. All revisions for these models been posted online.
*As a reminder, the Revision Explanation Presentation/Video is posed in the “News & Announcements,” section.
Round One LSA Revised Models:
If you have any questions please feel free to contact us at support@LSAportfolios.com or call us at 866-581-5724.
Economic Update 10-12-2015
LSA Portfolio Revisions! |
| LSA will be making model portfolio revisions over the next two weeks. These revisions will be spilt up in two rounds. Below is a list of all round one models that are scheduled to trade October 16, 2015. All revisions for these models will be posted today and will be ready to view by the end of the day on October 8th.
*As a reminder, the Revision Explanation Presentation/Video will be posted on Friday October 9th. We will be sending out another email confirming that all content has posted. ** TRADE DATE SCHEDULED FOR – October 16, 2015! ** Round One LSA Revised Models:
Round Two LSA Revised Models: this will include all VA/VUL model portfolios and will begin to post Monday October 12th. Trade date will be targeted for October 24th.
If you have any questions please feel free to contact us at support@LSAportfolios.com or call us at 866-581-5724. |
Economic Update 10-5-2015
As the media bombards your clients with countless articles referencing an impending bear market (roughly 1,400 by Bloomberg in the month of August alone), your role as a financial advisor has become just as crucial as it is difficult. Of all the roles you fill as a financial advisor, the benefit of keeping your clients’ emotions in check and their money off the sideline cannot be understated. This chart shows that, during the 14 year period of 12/31/1999-12/31/2015, if your client were to be sidelined from the market on just 10 of the best days of the S&P 500, their annualized return would be 472 bps lower (and in negative territory) than if they had stayed fully invested for the entire period. In such a turbulent quarter, it is of upmost importance to keep your client educated on the longer term benefits of a disciplined investment approach and well-diversified portfolio. See more tools from T. Rowe Price to help you properly inform your clients what they need to focus on during market volatility by clicking here (no log-in needed).
Economic Update 9-28-2015
Economic data for the week was highlighted by weaker durable goods orders and mixed but a bit better data on the housing side, while 2nd quarter GDP was revised higher.
Equity markets experienced a negative week globally, which continues the fall seasonal pattern of higher volatility. Bonds were mixed with interest rates rising slightly on the week.
There were several unique issues last week, excluding the typical recent excuse for volatility—continued slowness in the Chinese economy, particularly from manufacturing activity falling to a multi-year low. From a sector standpoint, healthcare lost the most ground (see comments from Hillary Clinton about drug pricing below) with one of the worst weeks for the segment in some time, while utilities, staples and financials gained some positive ground. Continue reading
Economic Update 9-21-2015
Fed Note
Well, this FOMC meeting was the big one, or at least had the potential to be. But, again, investors hoping for higher rates were disappointed—the Fed kept rates as they are for now. In recent weeks, the probability of the Fed raising rates for the first time in a decade became less and less likely as the global (particularly Chinese) economic situation deteriorated, which was reflected in U.S. financial market volatility. While futures markets predicted this outcome, economists were split on the probability of something happening today. Continue reading
Economic Update 9-14-2015
Hartford Funds recently released an analysis comparing the average performance of active management versus that of passive management during each period the market corrected in the past 30 years.1 Hartford removed any index or enhanced index funds from the Morningstar Large Blend category to represent its average active strategy and used the S&P 500 Tracking category to represent its passive. They found that there were 20 market corrections in the past 30 years. Of those 20 periods, active management outperformed passive 16 times, with an average excess return of 1.10%.
Passive management may have looked superior the past few years, but this was during a distorted market environment that favored passive strategies. With the end of QE, the highly anticipated lift off of the zero interest rate policy, and the first market correction in the past 4 years, we are beginning to see the transition from this particular market cycle into a more normalized environment. This would shift favor to active money managers that are skillful in capturing alpha and protecting on the downside, whose strategies have proven to outperform through multiple market cycles.
Economic Update 9-08-2015
LSA Connect 