Roundup by Asset Allocator Journal Staff
A coalition of 20 state attorneys general, led by New York’s Letitia James, has filed a lawsuit against the Trump administration, alleging unconstitutional restructuring of the Department of Health and Human Services (HHS). According to MedTech Dive, the suit claims HHS’s reduction from 28 to 15 agencies and layoffs of 20,000 employees violate congressional authority, impairing critical functions like mental health services and HIV/AIDS response. The restructuring, part of the Department of Government Efficiency’s push to shrink federal workforce, is said to have “severe, potentially irreversible” consequences.
In wealth management, Allworth Financial and Focus Financial Partners have appointed new growth leads to bolster expansion. Wealth Management reports that Allworth named Brian Werdesheim as chief growth officer, leveraging his experience from a prior acquisition, while Focus tapped Leonard Chang and Abby Salameh to drive advisor recruitment and mergers. Meanwhile, LPL Financial welcomed West Texas Investments, a women-led firm managing $250 million in assets, to its platform. According to LPL’s investor newsroom, the move enhances LPL’s presence in Texas, with advisors citing the firm’s technology and support as key factors.
UK investors are offloading bonds at the fastest pace since 2020, driven by fears of Trump’s tariff policies and delayed Federal Reserve rate cuts, per Business Matters. The uncertainty has spiked bond yields, prompting a shift to cash and equities, with £1.2 billion withdrawn from bond funds in March. Rising energy costs are also threatening UK businesses, with 60% of firms surveyed by Business Matters warning of reduced competitiveness due to higher electricity prices compared to EU counterparts.
Market commentary from Advisor Perspectives highlights a tariff-centric global economy taking shape, with Trump’s proposed 10-20% tariffs on imports potentially disrupting supply chains. While markets anticipate tariff relief, the uncertainty could pressure equities. Gold demand hit its highest Q1 level since 2016, driven by central bank purchases and investor safe-haven bets amid geopolitical risks, also per Advisor Perspectives. Separately, the same outlet detailed Warren Buffett’s unparalleled track record, with Berkshire Hathaway’s 19.8% annualized return since 1965 far outpacing the S&P 500.
Wealth Management explored the challenges faced by mothers in advisory firms, noting that while 70% of female advisors report supportive workplaces, work-life balance remains a hurdle, with flexible policies often lacking. In a leadership transition, advisor recruiter Mindy Diamond stepped down as CEO of Diamond Consultants, naming her son Louis as successor, per Wealth Management. The firm will continue its focus on advisor transitions.
The Financial Times reports the EU is eyeing tariffs on Boeing jets as part of a €100 billion retaliation plan if U.S. tariff talks falter, escalating trade tensions. The measures, requiring EU member approval, reflect concerns over U.S. protectionism. Uber, however, eased concerns about U.S. consumer demand, with the Financial Times noting strong ride-hailing growth, signaling resilience in discretionary spending.
