1. Despite The Potential For Blowups From Investors Taking Higher Risk In The Search For Returns, 2012 Showed That Present Dangers In The Financial System Are Manageable
(Matching tags: diversification,investor behavior,risk)

The year 2012 was a watershed year in that it proved that, after the near collapse during the financial crisis of 2008, present dangers in the financial system four years later remain manageable.   ...

2. Debate Over Risk Mitigation Properties Of Alternatives Sheds Light On Need For Client Education
(Matching tags: alternative investments, client education,risk)

Managers for Aston Funds, Direxion, and Salient sat down in New York City together last week to separate fact from fiction when it comes to the inherent risks in alternatives investing.   Advisors ...

3. Short Supply Of Bonds Is Eroding Quality And Influx Of Investing Is Increasing Risk
(Matching tags: bonds,markets,risk)

... dangerous territory and that the area holds more risk than at any time over the last few years.  ...

4. Institutional And High Net Worth Investors Accept Market Volatility As New Normal
(Matching tags: risk,alternative investments,investment strategies)

... are the only way to spread the portfolio risk in today’s markets.  ...

5. JPMorgan Reviews Its Clearing Customer Relationships In An Effort To Reduce Risk
(Matching tags: banks,derivatives,risk)

... if the profits from those customers are worth the exposure to risk.  ...

6. Insurance Companies Are Investing In Riskier Assets To Offset Losses From Low Interest Rates
(Matching tags: interest rates,annuities,risk)

Investors have been seeking higher yielding investments in droves despite the likelihood that they are taking on more risk in the process. Now, insurance companies are following suit in a departure from ...

7. State Insurance Regulators May Require Larger Capital Reserves For Insurors Who Purchase High Interest-Rate Mortgage Debt
(Matching tags: mortgage debt,risk,investment strategies)

Insurors in the US have been scooping up high interest-rate mortgage bonds. These bonds tend to carry more risk so state insurance regulators are coming forth with new rules requiring insurors who purchase ...

8. Closed-End Funds Offer High Yields But May Carry More Risk Than Investors Understand
(Matching tags: risk,client education,mutual funds)

Closed-end funds have been another high yield source that has recently attracted hoards of income-hungry investors. But caution should be taken before chasing those high yields.   The funds have ...

9. Target-Date Fund Investors Get More Low-Cost Options, But TDFs Need To Improve In Other Areas Too
(Matching tags: target date funds,diversification,risk)

... need to work on risk control.  ...

10. High Yield Muni Bond Funds Hit 10% Return Level Through Mid-August
(Matching tags: municipal bonds,mutual funds,risk)

High yield municipal bond funds had returned over 10% by mid-August. This is way above the 4% - 5% tax free return promised. Even 4% - 5% tax free in a practically zero-interest rate environment had ...

11. New Behavioral Finance Study Shows That Current Questionnaires Do Not Serve Investors Well
(Matching tags: behavioral finance,risk,client education)

Behavioral finance is injecting itself into the questionnaires you typically use with your clients. It’s finding that those questionnaires often come up short—especially in the area of risk ...

12. Regardless Of Your Clients' Asset Levels, Their Kids May Be At Risk From Social Media Exposure. It's Not Outside Your Advisory Role To Help Protect Them
(Matching tags: risk,client education,Social Media)

... Dell spends on security for his family cannot prevent a teenager from exposing themselves—and the family—to high personal risk through social media. ...

13. Losses From Trading Glitch May Make Knight Capital Inc. The Next Firm To Go Under
(Matching tags: markets,risk,NYSE)

Knight Capital Group Inc. suffered the most from the computer trading glitches on Wednesday, August 1, recording a $440 billion loss. Faulty software is being blamed for millions of trades that were ...

14. Studies Show Cognitive Ability For Decision Making Declines Across The Board As We Age; This Means Increased Challenges For You As An Advisor To Older Clients
(Matching tags: client service,risk,client communications,practice management)

Scientific evidence is indicating that everyone suffers from impaired cognitive ability as they age, not just those suffering from Alzheimer’s or a stroke. It is natural and inevitable and does not ...

15. Two Surveys Say Europe Is The Top Influencer On Advice To Clients, Even Above The US Economy And Unemployment
(Matching tags: investment strategies,risk,markets)

Two recent surveys—one by kasina, a consultant to asset managers and insurance companies, and another by Oppenheimer—of over 2300 advisors asked what factors were most likely to affect investor ...

16. FINRA Is Bringing Attention To The Risks Of ETNs Versus ETFs
(Matching tags: investing,risk,ETFs,FINRA)

Exchange traded notes (ETNs) are commonly thought of as similar to exchange traded funds (ETFs) but, in fact, they are quite different. The wild price swings of ETNs at Credit Suisse and Barclays of ...

17. New Survey Puts Social Media In Top Five Risk Management Areas For Company Executives
(Matching tags: business strategy,Social Media,risk)

A recent survey by Deloitte and Forbes showed that fewer than 25% of executive respondents actively monitor risk to their firms and, of those, 27% said that social media represents a growing risk factor. ...

18. Paper By Two Academics Examines Both Luck And Skill In Active Management
(Matching tags: markets,risk,active management,mutual funds)

  Is mutual fund portfolio performance a matter of skill? Or is it just the luck of the draw. A recent academic treatise says that data collected from 289 managers actively managing 355 funds for ...

19. Bank Analyst Whitney Says JPMorgan Trades Were For Profit As Dimon Sticks To His Story In House Finance Committee Testimony
(Matching tags: banks,risk,Dodd-Frank)

A prominent bank analyst says that what Jamie Dimon, head of JPMorgan Chase, has described as hedges designed to avert loan losses were really bets designed to yield profits for the bank’s portfolio. ...

20. Government Issues Warning To Investors About Market-Linked CDs
(Matching tags: client education,investing,risk)

Structured products have become a favorite of investors who are weary of market volatility while seeking returns on their money. The government recently issued a warning on one very popular structured ...