Tuesday, July 9, 2013

FINANCIAL ADVISOR INSIGHTS: BlackRock — Here Are 4 Reasons Why Now's The Wrong Time To Buy Gold

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Tuesday, July 9, 2013

FINANCIAL ADVISOR INSIGHTS: BlackRock — Here Are 4 Reasons Why Now's The Wrong Time To Buy Gold

FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors. For more visit Business Insider's new Wealth Advisor vertical.

BlackRock's Russ Koesterich Thinks Gold Prices Will Fall For 4 Key Reasons (Advisor Perspectives)

Gold prices are well off their $1900 peak. But BlackRock's Russ Koesterich does not think this is a good time to buy gold, because. He expects gold prices to fall further for 4 key reasons.

1. "Gold prices are facing the headwind of rising real (adjusted for inflation) interest rates for the first time in years." 2. A stronger dollar isn't good for gold prices. 3. The sentiment on gold has turned. 4. Indian demand for gold seems to be declining. "India’s money supply growth, a leading indicator for the country’s long-term inflation and a proxy for the country’s gold demand, hasn’t grown lately. Meanwhile, the fraction of total gold output held by central banks around the world has continued to decrease over the last decade and a sharp reversal in this trend is unlikely."

3 Morgan Stanley Brokers Join BAML (The Wall Street Journal)

Bank of America Merrill Lynch hired three brokers from Morgan Stanley with over $300 million in assets under management. The three brokers are Addison Sherman, Mary Ellen Tompkins and Angelo Mamone.

The Dollar Is Telling Us A Lot Of Companies Will Report Worse-Than-Expected Revenues (Goldman Sachs)

Goldman Sachs expects a lot of companies to miss revenue expectations. "We expect another disappointing quarter for revenues. Weak macro data in the first part of 2Q and dollar strengthening increases the likelihood of sales misses. We expect the percentage of companies missing top-line estimates will be above the ten-year average of 20%, but less severe in magnitude than recent quarters."

revenue dollar

Thousands Of SEC-Registered Advisors Aren't Subjected To Surprise Exams (Investment News)

A report from the Government Accountability Office said that 4,446 SEC-registered investors had control of $14 trillion in client assets as of April 1. Of these, 2,956 were not given surprise exams, according to the report cited by Investment News. "Advisers can be exempted from surprise inspections if they have custody of client assets only to deduct fees from client accounts or are “operationally independent” of the custodian," Investment News reported.