The stock market overcame some volatility early in the year but continued to trend higher. As the market has reached new all-time highs, many investors are wondering if it’s too late to put additional cash to work. Others have indicated they’re still waiting for a possible stock market correction before making any decisions. One thing remains clear – despite what happens in the market and when, it’s likely you still need your portfolio growing and generating retirement income over time. There are two types of money manager strategies that could ease concerns about where the market’s headed while positioning your portfolio for a variety of outcomes. Tactical Money Manager Strategies are designed to temper the effects of a market decline while trying to capture growth, and Dividend Income Money Manager Strategies aim to generate income while reducing volatility. Let’s take a look at both. [+] Read More

The uncertainty surrounding the current interest rate environment has many investors rethinking their retirement income strategy. Some are considering dividend income as a way to generate additional cash for their income needs. Below are four dividend money manager strategies that invest in dividend paying stocks as a means to provide income for portfolios, while also offering the potential for equity-like returns over time. As always, we encourage investors to discuss these dividend money managers with your financial advisor before investing. (WrapManager is not affiliated with the money managers listed and has not approved for use nor entered into contracts with all of the managers. This is for informational and comparison purposes only.) [+] Read More

Two common questions investors ask themselves at the beginning of any year are: What is the stock market going to do this year? And, how should I position my portfolio as a result? To provide some insight as to what may be in store for the year, we’ve taken a look at what seven of the biggest financial institutions in the world are predicting for 2014. As you read through these, it’s important to keep in mind that your portfolio’s allocation should be based on more than just a forecast—you also need to consider your long-term goals, cash flow needs, risk tolerance, and other factors related to your investment plan. How Will the S&P 500 Perform in 2014? Morgan Stanley - S&P 500 +9%1 Morgan Stanley equity strategist Dr. Adam S. Parker thinks the S&P 500 is set to rise 9% in 2014. Morgan Stanley’s strategy recommendations are to favor small cap stocks versus large cap, and at a sector level they prefer health care to consumer staples, technology to consumer discretionary, and chemicals to industrials and energy. Within financials, they like capital-market-sensitive banks and asset managers over insurers and regional banks. [+] Read More

Hiring a money manager is one of the more important decisions an investor can make, and it’s also a challenging one. To make matters a bit easier, we’ve outlined nine steps an investor should take to get the research and due diligence process started. [+] Read More

WrapManager’s Weekly Summary of Top Economic and Market News United States The Bureau of Economic Analysis released initial second quarter GDP numbers Wednesday, coming in at +1.7%. Since real GDP increased +1.1% in the first quarter, this marked an overall acceleration in the growth rate. The uptick primarily reflected gains in nonresidential fixed investment, exports, a smaller decrease in federal government spending, and an upturn in state and local government spending[i]. A day before GDP numbers were released, the Federal Reserve issued a statement labeling US economic activity in the first half of the year as “modest.” They pointed to improving labor market conditions as well as stronger activity within the housing sector, but noted that fiscal policy (reduced government spending) is restraining growth. With inflation still in check and economic conditions as they are, the Fed has indicated they will continue with their current monetary stimulus programs[ii]. President Obama is floating a proposal to cut corporate taxes from 35% down to 28%, while giving manufacturers a preferred rate of 25%. His plan would also include a minimum tax on foreign earnings, as a method of working to avoid corporate tax evasions and curbing international tax havens. The proposed plan is likely to be met by resistance from both parties in Congress, as Democrats are reluctant to lower taxes and Republicans are wary of the new spending proposals that come with the plan. Republicans have also been fairly vocal that any grand deficit reduction deal would need to include structural changes to programs like Medicare and Social Security, which Obama’s proposal does not include[iii]. Europe Last week we reported that European PMI (manufacturing data) came in at 50.1, but those figures were revised higher this week to 50.3. Any reading above 50 signals expansionary activity. PMI rose for every country in the euro zone except for Spain, and the 50.3 reading marks a two year high[iv]. [+] Read More

WrapManager’s Weekly Summary of Top Economic and Market News United States US Bankruptcy Judge Steven Roberts ruled Wednesday that Detroit could continue bankruptcy proceedings, allowing city officials to move forward in restructuring some $18 billion of debt, which includes $5.7 billion in unfunded liabilities for healthcare and other retiree benefits and a $3.5 billion pension liability. This marks the largest municipal Chapter 9 filing in US historyi. Earnings season continues in full force, with notable technology giants Apple and Facebook reporting this week. Both companies exceeded expectations, with Apple reporting earnings of $7.47 per share on revenues of $35.3 billion, while analysts estimated it would make $7.32 per share on $35.02 billionii. Facebook widely exceeded earnings estimates due to better than expected revenue on mobile ads. The company reported earnings of 19 cents per share on revenues of $1.81 billion, which outstripped estimates of 14 cents per share on revenue of $1.62 billioniii. Of the 104 companies that have reported earnings as of July 19, 72% of them have exceeded expectations. So far, this is slightly better than last year’s average of 70%, and in line the four year average of 73%iv. Japan Prime Minister Shinzo Abe’s ruling coalition (known as the Liberal Democratic Party, LDP) scored a major victory Sunday in winning enough seats to secure a majority in the upper house. The LDP now has a majority in both chambers of parliament, giving the party greater control to potentially continue aggressive monetary policies that have characterized Japanese politics this yearv. [+] Read More