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Wall Street News

Brokers & Asset Managers: 10 Surprises to Watch for in 2017

January 9, 2017

Morgan Stanley’s Michael Cyprys and his team see the potential for major change in the asset management industry. Citing, evolving customer demands, oversupply, rising competition and secular re-pricing, the team argue that 2017 could a turning point, advising caution on traditional firms in favor of alternative asset managers and brokerages.

 

The team offers up these 10 surprises – i.e., events with at least a 1-in-3 chance of playing out that are not baked into stock prices or analysts’ base cases:

 

  1. Secular Re-Pricing of Active Management Begins
  2. Buybacks Curtailed to Revitalize Growth
  3. Large-Scale Consolidation Starts
  4. Alternative Asset Manager Convert to C Corps
  5. Retail Trading Renaissance
  6. Great Rotation Out of Fixed Income Becomes Consensus
  7. Fiduciary Rule Lives On
  8. 2017 Makes Stock Pickers Great Again
  9. Risk Premia Investing Goes Mainstream
  10. ETF Pricing Falls Below Zero

 

Thought you’d also like to know that Cyprys favors these 3 stocks: Blackstone (BX), BlackRock (BLK) and Charles Schwab (SCHW).