What’s in store for wealth management firms in the coming months?
It appears that merging is the new trend. Reuters recently reported that the number of wealth management company mergers is soaring, primarily due to new regulations. Mergers allow businesses to consolidate and become stronger as one unit.
In 2013, approximately 43 percent of wealth assets under management that had been traded since 2008 were purchased. About $760 billion of funds changed hands – low prices were thought to have attracted more buyers. New deals are expected to continue well into the New Year.
Predictions for 2014
Several prominent financial advisors recently gave their two cents to Wealth Management magazine on what the coming months may hold for the industry. The Advisor Confidence Index was released in December to reflect some of the thoughts of industry experts heading into 2014.
Brian Betz of Percension Wealth Advisors believes that unemployment will remain steady along with the economy. Scott Shubert of Blue Granite Capital thinks that there is too much disconnect between the stock market and the economy, which is bound to show itself in the next few months.
As the debt ceiling debate rises again, Mike McLain of LeafHouse Financial Advisors believes that there may be significant pull-back if the Fed decides to decrease quantitative easing. Todd Petzel of Offit Capital thinks that Washington simply needs to get its act together.
Despite the hint of negativity, the official score documented in the ACI for the end of 2013 was 112.9 percent – anything over 100 is considered to be optimistic.
It seems like everyone has his or her own opinion of what the future holds for the financial industry in 2014, but only time will tell if any of these predictions will ring true. Needless to say, everyone is hoping for an upswing in the economy and a stable market to make for smooth sailing.