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Only 22% of parents are "completely confident" in their ability to teach their children the basics of investing, the survey found, and they're looking to their kids' schools for help. All else being equal, 74% of parents said they would move their children to a different school if it offered financial education and investment courses. SIFMA with Wakefield Research polled 1,000 U.S. parents of students in grades K-12. Getting your child hands-on experience with investing is also a smart strategy, advisors say. Hands-on experience also gives children a chance to discuss with parents what investing means to them, she said.

Persons: —, Melanie Mortimer, Lance Robert, Stacy Francis, Francis, Catherine Valega, Roth IRAs, Valega Organizations: SIFMA Foundation, Wakefield Research, Francis Financial, CNBC, Getty Images, Green Bee Advisory Locations: Los Angeles, New York, Getty Images Boston

☆ 'The reversion will eventually come': A chief strategist says Goldman Sachs and JPMorgan are right to warn of weak returns for the S&P 500 over the next decade
▼ + stars: | 2024-11-02 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

Goldman Sachs and JPMorgan predict relatively muted S&P 500 returns over the next decade. AdvertisementMuch has been said about the gloomy outlook for the S&P 500 that some of Wall Street's largest investment banks conveyed in recent weeks. Goldman Sachs said in October that the S&P 500 would return 3% annually, on average, over the next 10 years, underperforming current 10-year Treasury yields. Goldman Sachs"There is little argument that U.S. stock market valuations are elevated compared to historical averages. Investors appeared to do that, with the S&P 500 rising 0.4% on Friday to 5,728, 2.3% below all-time highs.

Persons: Goldman Sachs, Lance Roberts, Roberts, —, It's, Goldman, Sam Kuhn Organizations: JPMorgan, RIA, Service, Bank of America, RIA Advisors, Bureau of Labor Statistics Locations: Wall

☆ A 28-year market vet shares 2 similarities between the dot-com bubble and today's stock market environment — and 4 threats to the AI trade that could spoil the rally
▼ + stars: | 2024-06-22 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewThere are two major similarities between today's stock market environment and the dot-com bubble era, says RIA Advisors CIO Lance Roberts. RIA Advisors/AccentureAnd two, there is a small group of firms leading the overall stock market rally, just as it was in 2000. He's a bit more optimistic this time around because of the robust earnings performance fueling the few stocks leading the market. Advertisement"We are again experiencing another of these speculative 'booms,' as anything related to artificial intelligence grips investors' imaginations," Roberts said.

Persons: —, Lance Roberts, Roberts, Jonathan Golub Organizations: Service, RIA, Business, Accenture, Nvidia, UBS, Investors, Federal Reserve

☆ Here are 3 ways the labor market is showing concerning deterioration underneath strong headline numbers — meaning a recession and stock-market sell-off could sneak up on investors
▼ + stars: | 2024-02-03 | by ( William Edwards | ) www.businessinsider.com time to read: +6 min

Read previewThe labor market smashed expectations in January, adding 353,000 new jobs, far above economist forecasts of 187,000. Despite the strong headline number, however, there are signs that the job market is deteriorating beneath the surface. For one, the Bureau of Labor Statistics' household survey is showing some divergence from its payroll survey. "High labor and credit costs are beginning to materially impact corporate profits, which impacts both the labor market and (eventually) the default rate." Still, while there are signs of weakening, there are also signs of improvement in the labor market.

Persons: —, Jeff Schulze, today's, Shulze, Louis Fed, Lance Roberts, Ian Shepherdson, Lauren Goodwin Organizations: Service, Federal Reserve, Business, of Labor Statistics, BLS, of Labor, ClearBridge Investments, RIA Advisors, National Federation of Independent Business, Pantheon, Bank of America's Global, New York Life Investments, ClearBridge

☆ A 28-year market vet breaks down why the risk of a recession is 'higher than thought' — and warns 73 years of market history shows stocks are likely in for a terrible year
▼ + stars: | 2024-01-20 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

"However, the decline in full-time employment suggests recession risks are higher than thought." Here's the drop in wage growth Roberts mentions. At the moment, CEO confidence isn't great, Roberts pointed out, which could mean further trouble ahead for employment growth. AdvertisementA warning sign for stocksWhile it will take time for the labor market outlook to become clear, Roberts said stocks are already flashing signs of trouble. But that view became less popular in the second half of 2023 as the labor market proved resilient month after month amid Federal Reserve rate hikes, and inflation dropped to under 4%.

Persons: —, Lance Roberts, Roberts, St, Louis Fed, it's Organizations: Service, RIA, Business, Bureau of Labor Statistics, Conference, Federal Reserve

☆ Goldman Sachs just raised their recession probability due to stress in the banking system. These 20 stocks are least sensitive to an economic downturn, the bank says.
▼ + stars: | 2023-03-20 | by ( William Edwards | ) www.businessinsider.com time to read: +3 min

Silicon Valley Bank, Signature Bank, and First Republic Bank have all battled woes in the last week. Silicon Valley Bank and Signature Bank of New York both closed in recent days as a result of a run on deposits. Silicon Valley Bank had taken significant losses on bond investments, causing depositors to worry that their money would not be safe. This fear spread to customers of Signature Bank, which then sold assets at a loss to meet liquidity demands. First Republic Bank also appeared to have insufficient liquidity to weather a bank run, fueling concerns that it would be closed down.

☆ A 27-year market vet warns that regional banks will be more reluctant to loan money to their communities in the wake of the Silicon Valley Bank closure — pulling forward a recession and causing stocks
▼ + stars: | 2023-03-18 | by ( William Edwards | ) www.businessinsider.com time to read: +6 min

Depositors at other banks may fear for the security of their money, and rush to withdrawal all at once. "If those lending standards tighten, that's going to cramp consumer spending — 70% of the economy — you drag forward the recession." Naturally, such a drag on consumer spending will hurt corporate earnings, leading investors to discount forward earnings expectations, Roberts said. Right now, the median 2023 earnings per share target among major Wall Street strategists is $210. That probability level is low relative to the rest of Wall Street, according to a Wall Street Journal survey that show a median probability of 65%.

☆ U.S. banks' CDS prices surge as contagion concern widens
▼ + stars: | 2023-03-15 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +3 min

March 15 (Reuters) - A jump in the cost for Wall Street banks to insure bonds against default on Wednesday was another worrisome indicator of credit stress for investors amid the crisis at Credit Suisse and at U.S. regional banks. Swiss bank Credit Suisse (CSGN.S) fell to a record low on Wednesday. Five-year credit default swaps for the flagship Swiss bank hit a new record high. Credit default swaps on Credit Suisse also inverted on Wednesday with the two-year rising above the five-year, and both hit a new 52-week high, according to data from Ortex. Some analysts believe that the larger banks are resilient and are more worried about the smaller and mid-sized banks.

☆ Analysis: Sharp drop in equity premium may mark return of 60/40 portfolio
▼ + stars: | 2023-03-03 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +4 min

The thinning spread between returns from stocks and bonds is set to bring the 60/40 portfolio strategy back in favor. The Fed's move to tighten monetary policy at the fastest pace in decades pumped up bond yields after nearly two years of near-zero interest rates. On the other hand, "during a recession, yields will fall and Treasury bond prices will rise," said Roberts. While the economic downturn would hit stock returns, drop in bond yields should provide some relief in such a scenario, according to analysts. "For me, the best risk-reward portfolio in this environment for now is long duration Treasury bonds, and deep value, dividend equities," Roberts said.

☆ Wall Street experts are warning that stocks are in for more trouble as a robust November jobs report is crushing investor hopes of a dovish Fed
▼ + stars: | 2022-12-03 | by ( William Edwards | ) www.businessinsider.com time to read: +6 min

Stocks fell on Friday after the Bureau of Labor Statistics announced a robust November jobs report. But with the economy resilient, the Fed could continue to cause more pain for stocks going forward. November's jobs report, however, puts a pin the hopes of those anticipating easier policy sooner. He added: "Chairman Powell's speech earlier in the week was interpreted with a dovish lens, but that spin is likely to be reassessed based on the jobs report. Even before Friday's jobs report, some Wall Street strategists and money managers have been warning of further trouble ahead.

☆ A 26-year market vet breaks down why investing legend Jeremy Grantham is correct to compare the current market to the 2000 and 2008 'superbubbles' — and warns stocks will fall another 20%
▼ + stars: | 2022-10-15 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

There's little reason for optimism in today's market, Lance Roberts laments. Just look at the barrage of headwinds facing stocks right now, the RIA Advisors CIO said in an October 10 commentary. At the start of this year, investing legend and founder of GMO Jeremy Grantham, said stocks were in their fourth superbubble in the last century given that market valuations had veered from historical norms so drastically. On Friday, Roberts told Insider that he agrees with Grantham's assessments, and that he sees the S&P 500 dropping to around 2,900. One of Wall Street's most bullish strategists this year, BMO's Brian Belski, cut his 2022 price target on the S&P 500 again on Friday to 4,200.

☆ Big U.S. banks' prime rate soars to highest since financial crisis
▼ + stars: | 2022-09-21 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

A person enters the JPMorgan Chase & Co. New York Head Quarters in Manhattan, New York City, U.S., June 30, 2022. REUTERS/Andrew KellySept 21 (Reuters) - Three major U.S. banks said on Wednesday they will hike their prime lending rates by 75 basis points, bringing the rates to their highest since the global financial crisis of 2008. Central bankers expect to raise the rate to 4.6% by the end of next year, according to the median estimate of all 19 Fed policymakers. read moreA hike in interest rates typically boosts banks' profitability, since they can earn more net interest income - a metric that gauges the difference between the money banks earn on loans and pay out on deposits. However, too high interest rates can tip the economy over into a recession and squeeze consumer demand for loans, which can ultimately hurt lenders.

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