By Asset Allocator Journal Staff
A stronger-than-expected U.S. jobs report for May weighed on Treasury markets, Advisor Perspectives reports. Nonfarm payrolls increased by 139,000, beating expectations and signaling persistent labor market strength. As a result, yields rose across the curve and market odds of a near-term Fed rate cut diminished.
The Financial Times details how the SEC is considering new disclosure requirements for firms that use artificial intelligence in investment decisions. The proposals would mandate firms to explain how AI impacts decision-making and client outcomes. While aimed at boosting transparency, industry insiders warn the rules may be difficult to implement and could stifle innovation.
According to Advisor Perspectives, Wall Street is intensifying efforts to make private assets more accessible to retail investors through novel packaging. Asset managers are launching vehicles modeled on mutual funds that offer quarterly liquidity while investing in private equity and credit. These structures promise broader access and diversification, though concerns remain over fees and investor understanding.
Per WealthManagement.com, RIA platform Diversify has added a $450 million firm to its affiliate model, while Merit Financial Advisors has made its first acquisition in Utah. The moves reflect continued consolidation in the RIA space, with firms seeking scale, talent, and geographic expansion. Both deals are designed to bolster service capabilities and support advisor growth.
MedTech Dive reports that Medtronic has voluntarily recalled certain tracheostomy tubes after receiving reports that the device can become dislodged. Some customer harm has occurred, though no deaths have been reported to date. Medtronic has advised customers to quarantine and return unused units; replacements will be required for customers with the affected devices already in place.
In a speech published by the Federal Reserve, Governor Michelle Bowman expressed skepticism about the need for rate cuts, citing strong employment and elevated inflation. She noted that while progress on inflation has occurred, risks remain, particularly from housing and services. Bowman emphasized the importance of not easing prematurely, especially with economic growth proving resilient.
WealthManagement.com explores strategies advisors can adopt to better serve LGBTQ+ clients, particularly during Pride Month. The article underscores the importance of inclusive language, awareness of unique planning needs, and sensitivity to evolving legal frameworks. Advisors are encouraged to build trust through education and cultural competence.
The Financial Times highlights Tesla’s intensifying competitive challenges in China, where domestic EV rivals like BYD are gaining market share. Tesla has cut prices repeatedly but continues to lose ground amid a surge in local innovation and consumer preference shifts. Analysts cited in the piece question Tesla’s long-term viability in the region.
