'Wealth Effect'

Stan Sattler, director of investment solutions at Belle Haven Investments, a boutique asset manager, said the trend toward separately managed accounts is due to the “wealth effect.” As interest rates rise, institutions are rebalancing to fixed income as a tactical move. These big money centers are sending more money to SMA.

Sattler says Belle Haven gets asked all the time to build an ETF based on their bond strategies, but it scares him. The liquidity structure is yet to be tested in the fixed income space. If there is a large need for liquidity, some ETFs may struggle to meet that need unless they are a large, well-capitalized store.

-Diana Britton

Key Investment Book Address: Cruise Market Dynamics: Trends Impacting Advisors and Clients

Brian Klimke, chief market strategist at Cetera Financial Group, said during his keynote that if housing costs are removed from the CPI, inflation is close to 2% and not that far off the Federal Reserve's target.

And housing costs are coming down, there's just a delay in reporting. So it's still possible we could see the Fed cut rates three times this year, he said.

— Elaine Misonzhnik

Growth Forum Keynote Address: How to Use Alternative Real Estate Strategies in Client Portfolios

The multifamily sector is facing a headwind, with values ​​down 30% from their peaks, higher interest rates and a $1 trillion maturity wall in the coming years that will be difficult to refinance, Brandon said. Nielson, managing partner, co-founder of Keystone. , during his keynote address. Investors will have three options. They may try to raise new capital from their current investors, sell properties for a loss, or face liabilities.

“One reliever is if the Fed bails everyone out,” Nielsen said. “If the Fed cuts by 200 basis points, it will bail out most everyone over the next 12 to 24 months. If this happens, three quarters of borrowers will be bailed out. Anything less will be a train wreck. That's why inflation is still stubbornly a problem right now for real estate investors.”

– David Bodamer

Note: This live blog will be updated throughout Wealth Management EDGE