Federal Reserve Chair Janet Yellen said it could be "quite dangerous to allow inflation to drift down" and leave the economy trapped below the central bank's 2% target rate. There is evidence that inflation expectations are about to fall, she said.
Advisors who open a 529 college savings plan for their children are not required by the Financial Industry Regulatory Authority to report it to their employer, says attorney Alan Foxman. However, he notes that some firms may have their own requirements and suggests advisors double-check their compliance manual.
James Burron, chief operating officer of AIMA of Canada, says fund managers should not overlook careful analysis of macro trends as they search for market insights, with less emphasis on responding to near-term secular trends. Burron says concepts such as alternative beta and factor investing can "provide value [by] delivering something to investors that's better than buying a long-only fund and hoping things go up."
Research from Citi shows an increase in purchases of leading tech stocks by hedge funds in the third quarter of 2017, marking a shift from the industry and utilities sectors. Of the top 10 stocks held by the 50 largest hedge funds, eight are from the tech sector.
Europe's private debt market is expanding at a rate some commentators find alarming, as funds vie to offer best terms and lowest pricing. Industry participants point out that most of the competing funds were launched since the last economic crisis and their ability to survive more volatile conditions is unproven.
The troubles faced by the brick-and-mortar retailers look set to intensify as short selling in the sector has raced to a two-year high, rising 17% in October alone. Department store Macy's looks especially vulnerable as short sellers now hold nearly a fifth of its underlying stocks.
The European Securities and Markets Authority has released updates on several of its Q&A documents to further clarify the requirements of Europe's revised Markets in Financial Instruments Directive and the Markets in Financial Instruments Regulation. The updates cover market structure, transparency, data reporting and questions arising over commodity derivatives.
A CFI Institute survey reveals that asset managers expect to spend significantly less on sell-side research once Europe's revised Markets in Financial Instruments Directive comes into force. Of those surveyed, 78% said they will buy less research from investment banks and brokers, while 44% intend to increase their in-house research capabilities.
Nontraded business development companies saw a drop in quarterly capital raised during the third quarter, the BDC Market Snapshot shows, with $201 million being raised, the lowest quarterly total in five years. So far this year, BDCs have raised $673 million, down 49% from the fundraising pace of 2016.
Blackstone Real Estate Income Trust has updated its net asset value per share for Class S and Class I shares to approximately $10.51 and $10.50, respectively. Class D and Class T shares now have per-share NAVs of about $10.41 and $10.35, respectively.
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