It's shaping up to be a big week in the regulatory world: key aspects of the Department of Labor (DOL)'s fiduciary rule take effect today, mere hours after the House cleared a bill that, if passed, would dismantle many of the Dodd-Frank reforms. Here's what you should know:
Disruption: Stay diversified to not be left behind The pace of disruption across our world keeps accelerating. One of the first sectors to feel the impact of online commerce was the retail sector, and that impact has grown to be more and more profound. As Amazon celebrates its 20th anniversary of going public this month, we recognize that a whole generation of consumers has come of age always having an online shopping alternative.
Technology is changing the world we live in every single day — and if you tuned into OneBite earlier this week, then you know that it has also bred a new phenomenon in the financial markets: high-frequency trading (HFT), which has been met with both praise and skepticism from investors, legislators and all sides of the industry. This article was written in collaboration with the Dimensional Fund Advisors trading team.
Today, financial markets are evolving through globalization, competition and regulation, among other forces — but none more so than technology.
U.S. stocks seemed to be going higher and higher over the past couple of months. Whether or not you follow the market, you probably came across a headline or two that mentioned the Dow Jones Industrial Average (the Dow) had crossed the magical 20,000 mark. The first time the Dow hit a milestone that big was 1999, when it crossed the 10,000 mark — we were already in the internet age, and Microsoft was the company with the world’s largest market cap.
The economy in the United States is enormous; the total value of all the goods and services produced last year was approximately $18.5 trillion. Over the past eight years, growth has averaged 2.2% per year. Is it possible for such a huge economy to grow at a meaningfully higher, long-term rate? What drives growth? Are those forces controllable? How much do policy changes really matter?
Or how I learned to hate globalization and embrace my inner nationalist. 2016 was a year of surprises, to say the least, but these surprises do not seem random. There appears to be a pattern here — people feeling forgotten and shaking their fists and shouting, “we’re not going to take it anymore,” while the incumbent parties react with dismay and even resentment. And then the polls turn out to be wrong and the “unthinkable” becomes the new reality.
What a year! From a tumultuous start, with concerns about the health of the Chinese economy and depressed oil prices plaguing growth prospects, to the Brexit vote in the summer — and of course, our own presidential election in November — it was an eventful year in the financial markets. It was also an exciting year for investors, one in which maintaining discipline reaped handsome returns.
The results are in. How did the financial markets respond to the new president-elect? Read about it all on OneBite.
After the excitement of the Brexit vote last quarter, markets calmed down in the third quarter, and for the most part, we saw significantly less volatility relative to previous quarters. This isn’t unusual for the late summer months, when even traders take some time off from the markets.