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WrapManager's Investment Policy Committee

Lord Abbett: Why HSAs Matter More Than Ever

Posted by WrapManager's Investment Policy Committee

March 29, 2017

Many experts expect healthcare costs will continue to rise, making it important that advisors help their clients plan ahead.

According to the Kaiser Family Foundation, health care has become somewhat less affordable, even among those with health insurance. Since 2015, larger shares of people with health insurance say they have a difficult time affording their healthcare costs: from 27% to 37% for premiums; 34% to 43% for deductibles; and from 24% to 31% for copays and prescription drugs.

Some experts estimate that a 65-year-old couple who retired in 2016 will need $260,000 to cover just healthcare costs in their golden years—6% more than the previous year's estimate of $245,000. That’s the highest estimate since such projections started in 2002, and chances are repealing and replacing the Affordable Care Act, not to mention the high cost of pharmaceuticals, could push retiree healthcare costs even higher. All of which highlights the need for advisors to discuss with clients the flexibility and power of Health Savings Accounts (HSAs).

Read on for a summary of their analysis, or view the entire document here.

What is a Good Strategic Value Dividend Strategy Under Trump? - Federated Investors

March 21, 2017

Our first and primary answer to the client question of what one can expect from investment in a Strategic Value Dividend product is the opportunity for a high and rising income stream from high-quality business assets. For our more stock market-oriented clients, our answer is that we have historically delivered broad market returns, plus or minus, depending on the measurement period, but with a notably lower standard deviation. Both of those propositions were in effect prior to the US Presidential election; both remain in effect today. That being said, the world is now quite different than it was on November 8. How has this reality affected our companies? In short, not much, but let’s review some of the possible “talking points” involving the new administration’s policies. Keep in mind that all of these proposals are, for now, just media speculation and Sunday talk show fodder. But let’s tally up the potential pros and cons. [+] Read More

JP Morgan: The Importance of Immigration

March 14, 2017

In the early days of the new administration, no issue has been more controversial than immigration. The president’s statements on building a wall on the U.S.'s southern border, his actions on banning travel from specific countries and his heightened focus on deporting illegal aliens have generated a negative response from his opponents and a positive reaction from some of his supporters. As with our entire 100 days of change series, we will try to steer clear of political arguments. Policies in this area do have significant implications for both the economy and, ultimately, financial markets. So what actions has the president taken and advocated, how might these affect both illegal and legal immigration and what could this mean for growth, inflation and investment returns? Read the entire market commentary here. [+] Read More

Nuveen: Where to Find Value in 2017

March 6, 2017

Where Can Investors Find Value in These Markets? The recent behavior of equity and bond markets creates a conundrum for investors. Equity markets are rallying based largely on expectations for stronger economic growth, while bond yields have been falling and seem priced for economic stagnation. Which signal is correct? The economic environment may grow more complicated in time, but for now we expect acceleration to continue. Read an excerpt of the complete commentary below, or download the entire investment commentary as a PDF. [+] Read More

Legg Mason: 7 Reasons to Choose Active Management

February 27, 2017

While index investments have their place, it’s important to recognize what actively managed strategies can do for investors — especially in the current environment, where the risks embedded in passive strategies loom large. Market surprises in 2016 underlined the difficulty in predicting what’s coming next. The long run of gains since the financial crisis that buoyed passive strategies may not necessarily be the arc of the future. [+] Read More

BlackRock: Tax Reform and Trump Trades

February 20, 2017

We see potential for volatility in the coming months as more reform details emerge. Richard Turnill, BlackRock’s Global Chief Investment Strategist, discusses tax reform and the reflation trade. Turnhill was previously Chief Investment Strategist for BlackRock’s fixed income and active equity businesses, and has also led the Global Equity investment team. Read an excerpt of his weekly commentary below, or view the entire weekly investment commentary here. [+] Read More

JP Morgan Trade Policy Chess

February 13, 2017

President Trump’s first few weeks in office have been busy on many fronts. However, for investors, his statements on trade policy maybe the most consequential. JP Morgan's Chief Global Strategist Dr. David Kelly, CFA, explains the differences and similarities among a tariff, a value-added tax (VAT) and a cash-flow tax with border adjustments (BAT) and how they might apply to Mexico. He then examines the effects of each for the U.S. economy, consumers and investors. Read the entire market commentary here. [+] Read More

BlackRock: Returns in a Reflationary Environment

February 7, 2017

We have largely maintained our assumptions for equity returns while increasing those for fixed income. Richard Turnill, BlackRock’s Global Chief Investment Strategist, gives us the week in review. Turnhill was previously Chief Investment Strategist for BlackRock’s fixed income and active equity businesses, and has also led the Global Equity investment team. Read an excerpt of his weekly commentary below, or view the entire weekly investment commentary here. [+] Read More

Lord Abbett Stocks: Don’t Sweat the Post-Trump

January 31, 2017

Concerns about U.S. equity valuations reflect perceptions that the market has fully priced in prospects for earnings acceleration. But analysts' forecasts for 2017 are nearly unchanged from September 2016. U.S. companies are set to report their strongest profit growth in two years for the fourth quarter of 2016, based on consensus Wall Street analyst estimates. Continuing their recovery from a yearlong decline in quarterly profits, companies in the broad U.S.-market representative S&P 500 Index are expected to report their bottom lines grew by 3.4% in the fourth quarter of 2016, the fastest rate of growth since a 4.6% increase in the fourth quarter of 2014. This quarter’s growth is an improvement from the 3% increase witnessed in the third quarter, and growth is projected to accelerate over the course of 2017. Read on for a summary of their analysis, or view the entire document here. [+] Read More

Nuveen Weekly Commentary January 2017

January 24, 2017

Investors Await Clarity on Tax and Spending Policies Equity markets were mixed last week, with the S&P 500 Index down fractionally.1 Investors grew more wary about President-elect Trump’s increasing scrutiny of specific corporate policies and a possible push forhigher tariffs. The health care sector suffered due to drug pricing concerns, while retail sectors were hurt by generally disappointing earnings results. Read an excerpt of the complete commentary below, or the entire weekly investment commentary as a PDF. [+] Read More