With my divvies just bought $GIS, $BT, $GE, $VER, $IVZ, $PEP, & $NYCB
    View thread (22)
    Absolutely, a lot of rotation
    Will consolidation help the asset managers $BLK $EV $AMP $BEN $WDR $AMG $AB $FII $GBL $IVZ $JNS $LM $TROW?

    A number of people argue that the asset managers' profitability will rise as the industry consolidates and the companies get increased scale. See for example this article: https://seekingalpha.com/a/2fgi9

    However, consolidation cannot solve the key problem that active fund managers face: that they don't outperform their benchmark indexes but have a higher cost structure. That explains the shift to ETFs and the downward pressure in fees. If you're only performing as well as (or worse than) the index, why wouldn't your clients switch to lower cost ETFs or a robo advisor allocating assets among ETFs?

    This problem for asset managers -- that they don't add value versus ETFs and automated asset allocation but have a higher cost structure -- is not solved by industry consolidation. Bulking up your scale through acquisitions only works if margins are low but stable. But in this case, the fundamental business model is broken, so scale won't help. So as a group, the asset managers might be a poor investment.
    View thread (3)
    It's true. Human touch versus all the money apps...That's the big question, are millenials completely different, or will things revert as they mature (zillow versus realtors, Betterment versus your friendly RIA)
    As a pure-play ETF company, WisdomTree's results and discussion are critical for anyone watching the impact of ETFs on the asset management stocks $BLK $EV $AMP $BEN $WDR $AMG $AB $FII $GBL $IVZ $JNS $LM $TROW.

    Results: WisdomTree hit by outflows, but still tops estimates

    More on earnings, transcript, discussion:
    The Man Who Could Eat Half the Profit in Fund Management

    "In June 2016, he laid bare the asset management industry's dirty little secrets: actively managed products haven't performed better than their benchmarks; firms have grown too big as they focus on gathering assets; and fees have been structured to benefit shareholders rather than clients. That message proved unpalatable. Within a year, Peter Kraus was out as chief executive officer of AllianceBernstein Holding LP.

    But at least one of the remedies he championed at the $480 billion fund manager is catching on. Shortly before Kraus's departure, his firm won approval to introduce performance-based fees in the U.S., and may do the same in Europe. Fidelity International has introduced what it calls a fulcrum fee model, and Japan's $1.5 trillion Government Pension Investment Fund has said external firms will get the same as their passive peers unless they outperform their benchmarks.

    If pay-for-alpha becomes the industry norm, some active managers could see more than half of their profits disappear, according to Morgan Stanley analysts."
    View thread (2)
    Follow Dr. Stein and buy the S&P index or invest outside the U.S. even better. The U.S. is soon to pay a huge price too loose it's number 1 status. And, loose the RESERVE $ tic tic tic
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    6 Feb 2017
    Bearish Harami Patterns to slap shorts on http://bit.ly/2liHsL9 $M $JPM $CY $EXEL $IVZ $OLN $EL $EQT $CIT $LPX
    Johnson Steve
    6 Feb 2017
    Invesco fund manager says energy pipelines, up 42% in a year, have more room to run $IVZ
    First Principles
    11 Jan 2017
    BlackRock $BLK PE analysis implies stock's 10% overvalued b4 earnings Friday $BEN $IVZ $STT http://bit.ly/2ik0Hon
    Dividend Sheet
    14 Dec 2016
    9 Stocks For Value Investors With Dividend Focus - http://tinyurl.com/jryxmeg - $BBBY $FOSL $GPS $WELL $IVZ $MET $VLO $WDC $WNR $WRK
    Dividend Sheet
    9 Dec 2016
    10 Really Cheap Dividend Stocks - http://bit.ly/2htFzsf - $PFE $VZ $DIS $BMO $APLE $AXP $IVZ $MPW