WrapManager's Wealth Management Blog

"As it has for the past several years, the crisis in Europe continues to dominate the World Press. It continues to be a ping pong match of bad news followed by hope followed by bad news and so on. As we have stated, we believe the real crisis is not that the banks in Europe are going to go bust, but rather that Europe will become a "house divided" and the European Union will fail. It appears Central Banks and Eurozone countries have ample funds to save the failing Euro banks, but it also appears likely the end result of this crisis will be the European Union of Countries falling apart as they find it impossible to come to a mutual agreement." Download Churchill’s Full Commentary Here Get Free Research Reports about Churchill Management Group [+] Read More

Most of us think of our estate plan as our will or living trust. However, in many cases, those documents have no effect on some of your most important assets. Instead, your beneficiary designations control who will receive those assets. Always keep these important considerations in mind regarding your beneficiary designations. Download Full Commmentary Here [+] Read More

BlackRock explains the Euro crisis in their recent report on Europe and answers many questions about it that investors have today. "Europe's crisis is accelerating and the next month looks critical. Greece is running out of money fast and local politics are in disarray. Banks are reeling from ratings downgrades, asset write-downs and fragile funding. Global markets again are held hostage by the Eurozone's turmoil. This is a short- and long-term crisis. Today's is all about funding while tomorrow's is about structural reform, finding the right mix of spending cuts and growth, and - most difficult of all - giving up sovereignty." Download Full Commmentary Here Get Free Research Reports about Blackrock Inc [+] Read More

Avatar Associates' May commentary reviews their portfolios and takes a look at the effects of continued low interest rates. "The Fed is certainly aware of the problem of low interest rates for lenders. Outside the Fed (and likely within it) this is referred to as a policy of interest rate "repression." Historically, we have not had to be as concerned about this problem because, obviously, interest rates have never been this low. But we think the challenge today has become as serious for the Fed as its concern about borrowing costs. It represents another element that is stirring under the surface of monetary policy choices. As we have argued in the past, there will come a time when the Fed will probably have to declare an end to the "emergency." That will result in some sort of "normalization" of monetary policy which, in turn, will have mixed consequences. Higher rates will hurt borrowers and maybe business activity. But higher rates will also signify that the economy is strong once more. For lenders, their interest income will rise and that will have some positive consequences. Unfortunately, as well, the flip side is that bond prices will decline with those higher interest rates. So the asset value of the bond holdings will depreciate." Click here to read the full Avatar Associates report. Get Free Research Reports about Avatar Associates [+] Read More

Lord Abbett's Milton Ezrati takes a look at the pros and cons of the increase in consumer spending over the last few quarters. "Since late 2011, measures of consumption show acceleration in virtually all categories, despite the recent rise in gasoline prices. In one sense, this is good news for the economy, as it will push the pace of overall growth and, ultimately, prompt more hiring, which in itself will reinforce spending growth. But-and there is always a but-this new trend raises longer-term concerns. More liberal consumer spending can only take the economy so far. Because heightened levels of consumption will limit households' abilities to make needed improvements in their finances, any effort to boost outlays too far too fast would only threaten pinched finances at a later date, followed by spending cutbacks, say in 2014 or 2015, with all the recessionary influence that would impose on the economy in general." Get Free Research Reports about Lord Abbett Company Llc [+] Read More

Federated Investors' latest report discusses stock market and dividend returns based on the outcome of the Presidential election. "History suggests that investors could benefit from paying attention to the presidential election cycle. In modern times, the fourth year of a president's term has tended to be a positive one for stocks, as the incumbent does all the he can to remain in office. But what happens if the president comes from one party, and Congress is headed by another? What if the race is close? What if it’s a landslide? And does it matter if the winner is a Republican or a Democrat? All of these outcomes can have potential implications for the economy-and the markets." Download Full Commmentary Here Get Free Research Reports about Federated Investors Inc [+] Read More

Calamos Investments' April 2012 commentary focuses on rising debt and the implications for the market and economy. ""Risk on" is in favor and global markets have responded to QE and the liquidity surge, but we think it makes sense to be cautious about the sustainability of the current expansion. We are maintaining healthy skepticism. As we noted, we believe that a secular bull market requires a few more years of debt reduction, normalization of rates or at least the likelihood of normal rates, fiscal solutions to developed world deficit spending and the creation of a pro-growth, pro-business environment." Download Full Commmentary Here Get Free Research Reports about Calamos Investments [+] Read More

Janus Co-Chief Investment Officer examines the new risks in fixed income that most investors don’t know about. "The world has changed for fixed income investors. The four primary sectors in the fixed income market have essentially converged into two. Interest rate risk in the U.S. is at its highest level in decades. Sector risk/return characteristics have been significantly altered-perhaps permanently. These factors are coming together to create an environment of heightened risk for fixed income investors." Download Full Commmentary Here Get Free Research Reports about Janus Capital Management LLC [+] Read More

WrapManager’s Investment Policy Committee placed money manager Tradewinds Global Investors on Review status as of March 20, 2012. Chief Investment Officer, Co-President and Lead Portfolio Manager David Iben will be leaving Tradewinds on June 30, 2012, along with several key members of the Tradewinds’ portfolio team. If you currently have Tradewinds in your portfolio or are considering Tradewinds as an investment, WrapManager’s Investment Policy Committee recommends that you request more information here and speak with one of our Wealth Strategists before making any decisions. Our Wealth Strategists will provide you will detailed information about Tradewinds’ strategies and offer alternatives given these significant personnel departures. Mr. Iben was responsible for growing the Tradewinds 14-member team beginning in 2006. He was also portfolio manager for the Tradewinds Multi-Cap Opportunities strategy, which was one of WrapManager’s recommended money manager strategies for 2012. The strategy is now on review status. Three portfolio managers and Tradewinds’ Associate Director of Research will also be leaving Tradewinds to join Mr. Iben at Vinik Asset Management. As a result, several Tradewinds portfolios will be losing their lead and/or co-portfolio managers. These include: Nuveen Tradewinds Value Opportunities, Nuveen Tradewinds Global All-Cap, Nuveen Tradewinds International Value, Nuveen Tradewinds Global Resources, Nuveen Tradewinds Global Flexible Allocation, and Nuveen Tradewinds Small-Mid Cap. Tradewinds has not announced any successor to Mr. Iben. These most recent departures come on the heels of Paul Hechmer’s departure in mid-2009. Mr. Hechmer helped found Tradewinds and managed the International Value portfolio for several years. Get Free Research Reports about Tradewinds NWQ Global Investors, LLC [+] Read More