FINSUM
In 2024, travel transformed with AI-assisted trip planning, a resurgence of luxury train journeys, and a growing emphasis on wellness through solitude and stargazing. Urban explorers embraced green spaces and foraged dining, while music enthusiasts traveled extensively for live performances.
As 2025 approaches, the focus will shift toward deeper, experience-driven adventures. Literature-inspired tourism is on the rise, with book festivals attracting larger crowds and hotels celebrating their literary connections.
Astrocartography is gaining traction, guiding travelers to destinations aligned with their personal astrological charts. Meanwhile, honeymoons are becoming more immersive, with newlyweds favoring extended, meaningful getaways over traditional weeklong retreats.
Finsum: While everyone is implementing AI to improve efficiency, don’t forget to leverage it for personal matters such as gift and vacation ideas.
The debate over custodial pricing continues, with many questioning whether bundling all revenue sources into a single fee is fair. Since custodians don’t face significantly higher costs for a $10 million account versus a $100,000 one, a pay-for-services-used model may be more equitable.
Another pressing issue is the slow adoption of automated onboarding, as many custodians still require paper forms and wet signatures despite available digital alternatives. Some speculate that firms hesitate to streamline transfers because it would make it easier for advisors to switch custodians, reducing client stickiness.
Beyond pricing and onboarding, factors like service quality, cost, and additional features—such as dedicated support teams or integrated technology—shape custodian selection.
Finsum: As the industry evolves, understanding these priorities will be key to creating a more efficient and competitive custodial marketplace.
Hedge funds saw mixed results in February as market volatility surged amid trade tariff uncertainties. Fixed-income strategies performed well, benefiting from falling interest rates, while macro and equity hedge funds struggled due to sharp declines in technology stocks.
The HFRI Fund Weighted Composite Index fell 0.47%, with relative value arbitrage and event-driven strategies posting gains that were outweighed by broader declines. Cryptocurrency funds took a significant hit, with the HFR Cryptocurrency Index dropping 16.8% as volatility spiked.
Meanwhile, event-driven funds gained modestly, and fixed-income strategies extended their winning streak, marking another month of positive returns.
Finsum: As hedge funds navigate volatile conditions, their ability to adapt remains key to delivering returns in uncertain markets.
Americans today allocate a larger share of their wealth to the stock market than in previous decades, a shift largely driven by the rise of target date funds (TDFs). These funds, which automatically adjust their asset mix as investors age, have become the default option in many workplace retirement plans since the mid-2000s.
Research from MIT Sloan suggests that the widespread adoption of TDFs has led younger investors to hold more equities than they might have otherwise. The 2006 Pension Protection Act played a key role in this trend by allowing employers to use TDFs as default retirement investments, increasing participation in equity-heavy portfolios.
While the impact of TDFs is strongest in the early years of enrollment, many older investors have also gradually shifted toward similar investment strategies. As TDFs continue gaining popularity, they could contribute to market stability by influencing stock price movements and reducing volatility over time.
Finsum: The default 60/40 portfolio is too passive for many young investors and holding larger equity younger, could accelerate their savings.
Cryptocurrencies tumbled as concerns over a broader U.S. stock selloff overshadowed recent efforts by President Trump to support the industry. Bitcoin dropped more than 3% in early Asian trading, while Ether sank as much as 6% to its lowest level since October 2023 before recovering some losses.
The decline followed a sharp selloff in technology stocks, with the Nasdaq 100 plunging 3.8%, its worst session since October 2022. Despite Trump’s executive order to establish a U.S. Bitcoin reserve, investor sentiment remained fragile as macroeconomic risks took center stage.
Analysts noted that leveraged crypto-related ETFs were among the hardest hit, with some plunging more than 30% in a single day. While Bitcoin hovered around $79,300, traders were eyeing key support levels at $73,000 and $70,000, where stronger buying interest could emerge.
Finsum: While many think of crypto as hedge against market volatility, we need to remember that those hedges are a little effective on the currency side.
- Flame-cooked flavors are making a strong return as diners seek the rich, smoky depth that only open-fire cooking can provide. From Texas barbecue joints to London’s Brat and Kyoto’s La Bûche, chefs around the world are reviving traditional wood-fired techniques, creating dishes that capture the essence of rustic, high-heat cooking.
- Southeast Asian cuisine is also evolving, driven by chefs who have honed their craft abroad and are now returning home to reimagine their culinary heritage. Fine-dining establishments across Malaysia, Vietnam, and Singapore are blending time-honored recipes with innovative techniques and global flavors.
- China’s food scene is undergoing a renaissance, gaining long-overdue recognition on the global stage. In Beijing, chefs are reviving imperial-era recipes once reserved for emperors, offering a taste of history with meticulously recreated royal dishes. Meanwhile, Shanghai’s Hakkasan and Obscura are infusing classic Chinese flavors with contemporary influences, merging tradition with innovation.
Finsum: We have our eye out on these culinary trends and look forward to how a traditions are honored but innovation is evolving.
As the wealth landscape evolves, the number of high-net-worth individuals is on the rise. And that means financial advisors who can cater to their complex needs will be in high demand. Are you prepared to meet the challenge?
Our infographic provides key strategies to help you become the go-to advisor for these discerning clients, such as:
- Leveraging professional designations
- Offering diverse financial strategies
- Using technology as a service tool
Are you ready to seize this growth opportunity? Transform your approach to serving high-net-worth clients today.
1) Changing broker-dealers involves legal complexities, including contracts, non-compete clauses, and client ownership issues. Consulting an attorney specializing in FINRA and SEC regulations ensures compliance and helps avoid costly mistakes.
2) Losing access to client accounts upon resignation makes preparation critical. A well-structured plan—created at least 90 days in advance—should categorize accounts, assess compatibility with the new firm, and identify opportunities for electronic processing to minimize disruptions.
3) Involving staff early ensures accountability and a smoother transition. Assigning clear roles, setting deadlines, and holding regular check-ins help distribute the workload, preventing last-minute challenges and ensuring a seamless move to the new broker-dealer.
Finsum: Navigating the broker dealer transition can be difficult but these three steps will make the process smooth
Morgan Stanley has revised its U.S. economic outlook, predicting weaker growth and higher inflation due to escalating trade policies. The bank now expects GDP growth of 1.5% in 2025 and 1.2% in 2026, lowering its prior estimates of 1.9% and 1.3%, respectively.
Inflation forecasts have also risen, with headline PCE inflation projected at 2.5% by December, up from 2.3%, while core inflation is seen hitting 2.7% instead of 2.5%. Despite fluctuating trade policies with key partners, tariffs on Chinese imports remain in place, with China vowing retaliation.
These adjustments follow President Trump’s temporary suspension of tariffs on Canada and Mexico, reversing an earlier move to impose duties over concerns about drug trafficking and migration.
Finsum: Restrictive trade and immigration policies could weigh on economic growth, reinforcing their view of "slower growth, firmer inflation."
Separately managed accounts (SMAs) are evolving, with more firms integrating active management into customized portfolios. Unlike traditional SMAs that use passive indexing or third-party overlays, some new strategies incorporate direct active management for greater efficiency.
Actively managed large-cap equity SMAs, for instance, aim to provide market exposure while outperforming benchmarks through selective stock holdings. Transparency is also improving, with firms introducing after-tax reporting to help investors understand the impact of tax-efficient strategies.
Fixed-income SMAs are seeing similar advancements, with more customization options, such as state-specific municipal bond strategies.
Finsum: As the demand for personalized investing grows, SMAs are becoming a key tool for advisors seeking both performance and tax efficiency.