FAI: America's hottest investment product is exploding in popularity
There isn't much left to say about the explosive growth of exchange-traded funds that hasn't been said already.
They are expected to benefit from the Department of Labor's fiduciary rule, and it has been said that they could make up 60% of investments in the US in the next decade, up from 15% now. Mutual funds are fighting back by cutting fees and launching new ETF-like structures.In short, they pose an existential threat to active funds. They're also fundamentally changing trading on Wall Street.
In other news, a huge reversal might be about to take place - and it could see $2.3 trillion move in to the stock market. Wall Street's smart money is dumping the biggest trade in stocks since Trump's election.
And the head of fixed income at a $221 billion fund manager told us what he thinks about the bond market in 2017.
There's a level way more important than Dow 20,000, according to famed bond investor Bill Gross. Deutsche Bank's top economist said US President-elect Donald Trump will be an improvement on "a mediocre status quo." And here's why Wall Street's big call on the bond market is all wrong
Lastly, the US stock market may be at an all-time high, but there are still stocks that could offer significant upside potential, according to Goldman Sachs.
And here's a roundup of stories from across Wall Street:Technology is changing the world.
Yes, we know you know that. But knowing that the world is changing, and figuring out how to prepare for that change, are two different things. Nearly half of all global public companies could be disrupted in the next decade, according to Citigroup.
In Wall Street news, Goldman Sachs named a new head of its giant tech division. HSBC will move jobs to "France, Ireland or Holland" because of Brexit, according to chairman Douglas Flint. Warren Buffett's favorite banker landed a $9 billion deal.
There is a fair bit of markets news out there today. Here are the highlights:
- One of the most brilliant China minds in the world has a warning for the second half of 2017
- Bill Gross' latest outlook is a wild letter that includes a poem about Africa, the economic prospects under Trump, and his forecast for US Treasurys
- Small-business optimism surged after the election
- Larry Summers "sees no merit" in Trump's $1 trillion infrastructure plan
- Richmond Fed President Jeffrey Lacker is retiring
- Trump's attacks on Mexico could come back to bite the US in a number of ways
- There's a catch with OPEC's plan to cut production
There's something missing from one of the largest healthcare investor meetings of the year. Valeant hiked prices for a dizzying number of drugs last week. And L'Oreal is buying three skincare products from the pharmaceutical company for $1.3 billion.
In an unusual move for a US tech company, Snapchat is making the UK its international headquarters. This tech company pays for weddings and tuition, but sometimes it's better to just get a bigger check.
And here's what it's like to use Ellevest, the hot new investing platform helmed by Sallie Krawcheck and backed by tennis superstar Venus Williams.Lastly, Wall Street's best athletes shared their training tips with Business Insider.
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