Top news articles for financial advisors and personal finance
Week of 6/13
This week's recap focuses on tips for young investors to navigate inflation, inflation’s continued effect on the housing market, and the issues surrounding promoting ESG and racial diversity efforts through investing.
How Younger Investors Should Navigate Inflationary Periods (Joe Boyle, Financial Advisor Magazine)
A first time for everything. Many in younger generations have never experienced inflation at levels that we are experiencing today, causing worry and alarm. Read more about what you may be able to tell your younger clients to help them through these periods.
Why Investing in Racial Equity Through Stocks is So Complex (Tobias Salinger, Financial Planning)
In addition to ESG and sustainability metrics, clients are increasingly interested in the racial and gender diversity efforts of companies that they are investing in, wanting to use public equities to drive change. Read more to learn how some wealth and asset managers are advancing racial equity through their investment strategies.
How the ESG industrial complex blurs the lines for do-good investors (Lynnley Browning, Financial Planning)
With no standard metrics or ways to collect data, measuring a company’s performance on ESG metrics can be difficult. Moreover, a company that may be excellent on one ESG metric such as green energy, may not be great on another metric such as helping the defense industry. Read more to better understand how these ratings and ESG funds work to make better informed portfolio decisions for those ESG conscious investors.
Even Deep-Pocketed Buyers Are Starting to Back Away From the U.S. Housing Market (E.B. Solomont, The Wall Street Journal)
“The number of luxury homes that sold during a three-month period from Feb. 1 to April 30, 2022, dropped 18% compared with the number of sales during the same period in 2021.” While many would expect these high net worth individuals to not be affected by high inflation and gas prices, these buyers are beginning to worry about being caught at the top of the peak. Read more to learn about what is currently happening in the U.S. luxury market.
Mortgage Rates Hit 5.78%, Highest Level Since 2008 (Orla McCaffrey, The Wall Street Journal)
The average rate on a 30-year, fixed-rate mortgage is now 5.78%, with some lenders even offering rates above 6%. This increase marks the largest weekly increase since 1987. Read more about these rising rates.