Nerd's Eye View

JANUARY 2, 2023

Welcome to the January 2023 issue of the Latest News in Financial #AdvisorTech – where we look at the big news, announcements, and underlying trends and developments that are emerging in the world of technology solutions for financial advisors! This month's edition kicks off with the news that Envestnet has decided to enter the RIA custodial business through a partnership with Australian bank FNZ to white-label what was once the State Street RIA custodial platform of many years ago –

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The Big Picture

JANUARY 2, 2023

Merry Christmas, Happy New Year, and all the rest of the seasonal glad tidings for you and yours in 2023. Before we roll up our sleeves and start to engage in the serious business of managing risk in the capital markets, I wanted to share a story that is more in keeping with the spirits of the season. I ran track in high school. My father’s advice when I joined the team was: Find the fastest guy on the team and keep up with him.

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Startup Banking Accounting Management 345

The Reformed Broker

JANUARY 3, 2023

If you’re a financial advisor or a fund manager and you weren’t down 20% last year, you won, basically. The S&P fell into a 20% bear market while the Nasdaq crashed almost 40%. Bonds were down double digits as an asset class. International stocks, while outperforming the US and not down as much, were still down a lot. Except for Turkey, which inexplicably doubled last year – here’s the TUR ETF, The post Think you have it bad?

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Abnormal Returns

JANUARY 1, 2023

Also on the site Why you should choose simplicity over complexity: the case against FSAs. (abnormalreturns.com) Top clicks this week Here is Eddy's 2023 Buy List. (crossingwallstreet.com) The best books Ben read in 2022 including "Die With Zero" by Bill Perkins. (awealthofcommonsense.com) A look at the best charts of 2022. (topdowncharts.substack.com) Six things that don't change in financial markets including the attraction of 'shiny objects.

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Speaker: Duke Heninger, Partner and Fractional CFO at Ampleo & Creator of CFO System

Are you ready to elevate your accounting processes for 2025? 🚀 Join us for an exclusive webinar led by Duke Heninger, a seasoned fractional CFO and CPA passionate about transforming back-office operations for finance teams. This session will cover critical best practices and process improvements tailored specifically for accounting professionals.

Accounting

Nerd's Eye View

JANUARY 4, 2023

Financial advisors have a wide range of strategies at their disposal to create financial plans for their clients. And when it comes to retirement planning, one popular technique is the use of ‘guardrails’, which set an initial monthly withdrawal rate that can be later adjusted as the size of the client’s portfolio changes. This strategy is valuable because it generally allows for higher initial withdrawal rates than more static approaches that don’t accommodate clients wi

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Pragmatic Capitalism

JANUARY 2, 2023

Here are some of my favorite posts from 2022.

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Abnormal Returns

JANUARY 1, 2023

Markets Global stocks and bonds lost more than $30 trillion for 2022. (ft.com) The 60/40 portfolio had a historically bad year. (finance.yahoo.com) Apple ($AAPL) lost $846 billion in market cap in 2022. (marketwatch.com) 2022 was a big year for ETFs, except for a spot Bitcoin ETF. (theetfeducator.com) IPO proceeds fell off the table in 2022. (cnbc.com) Strategy Average annual stock market returns are not-so average.

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Nerd's Eye View

JANUARY 6, 2023

Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that the Securities and Exchange Commission (SEC) has received significant pushback from investment adviser and financial industry trade groups to the regulator’s recent proposal that would establish formalized due diligence and monitoring obligations for investment advisers that outsource certain advisory functions.

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The Big Picture

JANUARY 5, 2023

Source: Reddit. The post Stocks That Lost the Most Market Cap in 2022 appeared first on The Big Picture.

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Speaker: Abdi Ali, Sr. Lease Accounting Consultant

Join this insightful webinar with industry expert Abdi Ali, who will discuss the challenges that can arise from managing lease accounting with spreadsheets! He will share real-world examples of errors, compliance issues, and risks that may be present within your spreadsheets. Learn how these tools, while useful, can sometimes lead to inefficiencies that affect your time, resources, and peace of mind.

Accounting

Calculated Risk

JANUARY 6, 2023

From the BLS : Total nonfarm payroll employment increased by 223,000 in December, and the unemployment rate edged down to 3.5 percent , the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in leisure and hospitality, health care, construction, and social assistance. The change in total nonfarm payroll employment for October was revised down by 21,000, from +284,000 to +263,000, and the change for November was revised down by 7,000, from +263,000 to +256,000.

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Numbers 145

Abnormal Returns

JANUARY 4, 2023

Markets 15 charts that explain 2022 returns. (morningstar.com) 2022 was a good year for value. (blog.validea.com) Consumer sentiment is awful. (alhambrapartners.com) Commodities Managed futures returns in 2022 were front-end loaded. (rcmalternatives.com) Natural gas prices in Europe have fallen to pre-war levels. (axios.com) Lumber prices are back down to pre-pandemic levels.

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Pragmatic Capitalism

JANUARY 5, 2023

Here are some things I think I am thinking about: 1) 2023, the Year of Disinflation?

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The Big Picture

JANUARY 6, 2023

Source : Bloomberg Billionaires Index. I was in the midst of my analysis of how the Fed would react to softening wage gains in the NFP data, when the markets exploded 2.5% higher. The Fed is very concerned that the perennially underpaid median worker has been seeing wage increases. The past few years follows 3 decades of lagging income. It kinda killed my motivation to write yet another pierce discussing Fed actions.

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Marketing Marketing 312

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Join us in this webinar, where we share best practices on how to think about the reconciliation work each month, when best to do reconciliations, how they should be prepared, and some common pitfalls to avoid. Learning Objectives: This course objective is to understand how to properly prepare and review balance sheet reconciliations and its impact on the financial statements.

Accounting

Calculated Risk

JANUARY 6, 2023

With 4.50 million jobs added, 2022 was the 2nd best year for job growth in US history behind only 2021 with 6.74 million. The headline jobs number in the December employment report was above expectations, however employment for the previous two months was revised down by 28,000, combined. The participation rate increased, and the unemployment rate decreased to 3.5%.

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Abnormal Returns

JANUARY 5, 2023

Books An excerpt from Sheila Liming’s forthcoming book, "Hanging Out: The Radical Power of Killing Time." (theatlantic.com) An excerpt from Dacher Keltner’s new book, "Awe: The New Science of Everyday Wonder and How It Can Transform Your Life." (theatlantic.com) Society Americans are spending more time and money on pets. (washingtonpost.com) There seems to be a marked shift in attitudes toward work for younger generations.

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Trade Brains

JANUARY 1, 2023

Fundamental Analysis of Tejas Networks: Broadband connectivity to homes and businesses is an essential service like gas, electricity, and water, especially with the onset of the pandemic. High-speed connectivity is an enabler of business continuity and resilience, it is the engine of e-commerce. And telecom equipment companies play a major role in enabling connectivity.

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The Big Picture

JANUARY 4, 2023

The Philly Fed’s November State Coincident Indicators snuck out while I was away (1/28/22). There are increasing signs of local distress revealed in the midwest, and lots of softness elsewhere. As detailed here , over the past month, the SCI indicies increased in 30 states, decreased in 13 states, and remained stable in seven, for a one-month diffusion index of 34.

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As we step into 2024, the lending landscape evolves rapidly with technology, regulations, and market dynamics driving change. For banks and financial institutions to stay competitive and meet the evolving needs of their customers, these drivers must be understood and engaged with. Lenders can anticipate significant transformation fueled by technological advancements, regulatory shifts, and changing consumer behaviors.

Banking

Calculated Risk

JANUARY 3, 2023

Here is another monthly update on framing lumber prices. This graph shows CME random length framing futures through January 3rd. Lumber was at $374 per 1000 board feet this morning. This is down from the peak of $1,733, and down 67% from $1,148 a year ago. Prices are slightly below the pre-pandemic levels of around $400. Click on graph for larger image.

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Abnormal Returns

JANUARY 3, 2023

Research How do bonds perform after a 2-10 yield curve inversion? (simplify.us) What accounts for the difference between brown and green stocks? (alphaarchitect.com) A look at how various factors performed during different market cycles. (quantpedia.com) How is geopolitical risk measured? (alphaarchitect.com) Contrary to the life-cycle hypothesis, the elderly don't uniformly engage in decumulation of assets.

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A Wealth of Common Sense

JANUARY 2, 2023

Earlier this year I looked at the worst years ever for the U.S. stock market. Well, things didn’t get much better from there. Here’s the updated list: This past year’s 18.1% loss was the 7th worst loss since the 1920s.1 The bond market also had one of its worst years in history. It was easily the worst year ever for the Bloomberg Aggregate Bond Market Index, which dates back to 1976.

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Marketing Marketing 137

The Big Picture

DECEMBER 31, 2022

The weekend is here — AND it’s New Year’s Eve! Pour yourself a mug of Porto Rico Importing coffee, grab a seat by the fire, and get ready for our longer-form weekend reads: • The Backstory of ChatGPT Creator OpenAI : Behind ChatGPT and other AI breakthroughs was Sam Altman’s fundraising—but skeptics remain. ( Wall Street Journal ). • 52 things I learned in 2022 : This year I worked on fascinating projects in energy, media and health* at Magnetic, and learned many learnings. ( M

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Speaker: Igli Laci, Strategic Finance Leader

In today’s competitive market, pricing is more than just a number — it’s the cornerstone of profitability. The right pricing strategy ensures that you capture the true value of your offering, paving the way for sustainable growth and long-term success. Join Igli Laci, Strategic Finance Leader, in this exclusive session where he will explore how a well-crafted pricing approach balances customer perception with business objectives, creating a powerful tool for securing both competitive advantage a

Numbers

Calculated Risk

JANUARY 1, 2023

From Moody’s Analytics Senior Economist Lu Chen and economist Xiaodi Li: Apartment struck a balance, Office demand plummeted, and Retail remains flat Corporate profits squeezed under macroeconomic uncertainties and flexible work arrangements weakened office demand and continued to transform the sector’s fundamental. Moreover, new office demand isn’t always reflected through direct leases.

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Abnormal Returns

JANUARY 4, 2023

Retirement Why you need a diversified life portfolio in retirement. (wsj.com) Why you want to have options in retirement. (kiplinger.com) Everybody wants the FI in FIRE. (bestinterest.blog) Giving up How to de-prioritize activities that don't serve you. (genyplanning.com) Why you should choose simplicity over complexity: the case against FSAs. (abnormalreturns.com) This startup site is designed to provide people with information about divorce.

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The Irrelevant Investor

JANUARY 2, 2023

Market predictions are silly. We all learned this a long time ago. But that doesn’t mean they’re completely worthless. Even though forecasts are almost always wrong, they can be entertaining and educational. That’s all I’m trying to do with this post. Entertain and educate. Needless to say, but I have to say it anyway, nothing in this list is investment advice.

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The Big Picture

JANUARY 5, 2023

My early morning train WFH reads: • Get Ready for the Richcession : Well-off Americans could get hurt more than usual in the next downturn ( Wall Street Journal ). • Why Markets Were Down in 2022 : there was also an Occum’s razor answer for the losses in financial markets in 2022. Sometimes the reason asset prices fall is because they went up too much in the first place. ( Wealth of Common Sense ) see also Observations to Start 2023 : From 2010 through 2021, The S&P500 Index gained 330% — a

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Speaker: Joe Buhrmann, MBA, CFP®, CLU®, ChFC® Senior Financial Planning Practice Management Consultant eMoney Advisor

During an era of evolving consumer preferences, the banking sector is undergoing a profound shift. As customers continue to broaden their perspectives, banking professionals must support their customers' financial wellness by providing holistic financial advice that aligns with individual goals and circumstances. Without adapting, financial institutions will find that loyalty may crumble amid uncertainty.

Financial Advice

Calculated Risk

JANUARY 4, 2023

From the BLS: Job Openings and Labor Turnover Summary The number of job openings was little changed at 10.5 million on the last business day of November, the U.S. Bureau of Labor Statistics reported today. Over the month, the number of hires and total separations changed little at 6.1 million and 5.9 million, respectively. Within separations, quits (4.2 million) and layoffs and discharges (1.4 million) changed little. emphasis added The following graph shows job openings (black line), hires (dar

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Numbers Economy Marketing Marketing 142

Abnormal Returns

JANUARY 3, 2023

Markets How major asset classes performed in December 2022. (capitalspectator.com) 2022 was the third worst year for the 60/40 portfolio. (awealthofcommonsense.com) The Dow lead the major indices in 2022. (albertbridgecapital.com) Strategy Don't let the turn of the calendar overly influence your thinking. (ritholtz.com) It's been a long time since international stocks outperformed the U.S.

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Wealth Management

JANUARY 5, 2023

A bad website can be just as harmful for your business as having no website at all.

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Financial Advisor 131