Brian Spinelli discusses our thoughts on how the markets are grappling with the US debt ceiling. Right now, there is no negotiated deal and the US will hit its debt ceiling in June. Congress is trying to negotiate and we are seeing incentives on both sides to get this deal done. To understand the impact, we can use history as a guide. If you go back to the July 2011 timeframe, you can see how markets reacted the last time when this was an issue. In July 2011, the US equity markets began reacting quite negatively to a potential debt ceiling hit. Stocks became extremely volatile, but shortly thereafter, volatility dropped significantly and stocks began to recover in a relatively short time. At the same time S&P downgraded the US government from AAA status to AA status. As we move forward to now, that’s a pretty big incentive to get things done. We do believe politicians are aware of that. The timing around when that deal will happen is the hard part. The closer we get to the date, we expect stocks to become more volatile. Right now they have not been. The most volatile right now is the 1 month US treasury bill which has skyrocketed in yield from around the 3 1/2 range upwards of five, which is pretty significant. Watch this video now to learn more.
Debt Ceiling Deadline and How Markets are Reacting
Financial Planning Videos | 05.26.2023
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HH ranked No. 8 on the 2023 CNBC Financial Advisor 100 list
Last received September 2023 based on 12/31/2022 data.
CNBC enlisted data provider AccuPoint Solutions to assist with ranking.
Disclaimer
The rating is not indicative of Halbert Hargrove Global Advisors future performance. Halbert Hargrove Global Advisors did not pay a fee to participate in the survey.
Methodology
CNBC enlisted data provider AccuPoint Solutions to assist with the ranking of registered investment advisors for this year’s FA 100 list.
The methodology consisted of first analyzing a variety of core data points from AccuPoint Solutions’ proprietary database of registered investment advisors. This analysis started with an initial list of 40,646 RIA firms from the Securities and Exchange Commission regulatory database. Through a process, the list was eventually cut to 812 RIAs with those firms meeting CNBC’s proprietary criteria.
CNBC staff sent an extensive email survey to all those firms that met the initial criteria to gather more details. In turn, those advisory firms filled out a comprehensive application in regard to their practice. The CNBC team verified that data with those firms and with the SEC regulatory database. AccuPoint once again applied CNBC’s proprietary weighted categories to further refine and rank the firms, ultimately creating the list of the top 100 firms.
The primary data points used in the analysis were reviewed, either as a minimum baseline or within a range, eliminating those firms that did not meet CNBC’s requirements. Once the initial list was compiled, weightings were also applied accordingly. These data points included:
- Advisory firm’s regulatory/compliance record. (editor’s note: Each advisory firm’s CRD number was checked for validity. Any firm that had a disclosure on its SEC ADV was automatically disqualified from the ranking)
- Number of years in the business.
- Number of certified financial planners.
- Number of employees.
- Number of investment advisors registered with the firm.
- The ratio of investment advisors to total number of employees.
- Total assets under management.
- Percentage of discretionary assets under management.
- Total accounts under management.
- Number of states where the RIA is registered.
- Country of domicile.