Apple recently replaced AT&T on the Dow 30, and while some analysts are speculating that it could be a good move for AT&T, the change-up is creating some immediate waves. Because Apple’s stock is nearly four times the price of AT&T’s stock, the divisor used to calculate the index has declined slightly, MarketWatch reports. That means a $1 change in price in any participating company’s stock will move the Dow by about 6.67 points, compared to 6.42 point prior to the change. Therefore, a 1 percent move in Apple’s stock—about $1.28 at Wednesday’s closing price—would move the Dow by about 8.54 points.
Teachers outperformed 80 percent of all other investors over the past year, according to research by Openfolio, a sharing platform for investors. According to the site, teachers returned an average 10.2 percent over the past year, compared to 7.6 percent for the average investor. Techies were up 8.3 percent, while finance professionals gained about 7 percent over that period. Openfolio points to three reasons why teachers outperform: They have a long-term investment horizon; they are more invested, holding less in cash; and they are more diversified.
Without giving a date, the latest language coming from the Fed’s Open Market Committee indicated to many analysts that a hike of the federal interest rate is coming sooner than later. Many aren’t sure how a higher interest rate would impact them directly, and economist Richard Ebeling gave some tips advisors could use to help clients prepare. Credit card rates are likely to rise along with the interest rate, so Ebeling said it would be smart to pay off debts or look for zero percent balance transfers now before the Fed’s announcement. Same goes for mortgages and auto loans, so now would be a good time for clients considering buying a home or car to pull the trigger. The good news is that savings accounts should also generate more interest, so it might be best to avoid putting cash into any long-term CDs, Ebeling said.
March continues to big a big month for financial technology. While the launch of Schwab’s robo-advisor attracted the most headlines, there’s plenty of other news coming from the FinTech world. Orion Advisor Services announced that it added $15 billion in new assets since it announced its acquisition by TA Associates, bringing its total assets to $200 billion. This week, SigFig launched “SigFig Guidance,” a portfolio analysis tool that it said would optimize returns and reduce fees, and eMoney forged a new partnership with Peak Advisor Alliance that integrates the “Digital Fortress” practice management technology into the emX Select dashboard.
