It is a rare scenario where long-term interest rates suddenly fall below short-term interest rates.Real Estateread more
Arturo Estrella has a message for recession naysayers: It could hit sooner than you think.Marketsread more
Fed Chairman Jerome Powell faces the tough challenge of presenting a unified voice on Fed policy from the most divided Fed in years.Market Insiderread more
Overstock CEO Partick Byrne has resigned from the e-commerce company after making comments about his role in the "deep state."Technologyread more
It was the third trigger of the recession indicator in less than two weeks.Bondsread more
Automakers are trying to deal with President Trump's efforts to roll back Obama-era fuel efficiency rules.Autosread more
Mark Zuckerberg has been on a selling spree in August and has unloaded $526 million worth of stock this year.Technologyread more
Palantir CEO Alex Karp said billionaire investor Peter Thiel is right to question Google's decision to work in China, while abandoning military contracts in the US.Technologyread more
These are the stocks posting the largest moves midday.Market Insiderread more
U.S. manufacturer growth slowed to the lowest level in almost 10 years in August, the latest sign that the trade war may be exacerbating the economic slowdown.Marketsread more
L Brands shares fell by as much as 12% at one point, touching $17.61 — a price not seen since December 2009.Retailread more
It's not a matter of convenience; it's a matter of credibility.
That's the big takeaway from a PricewaterhouseCoopers analysis of more than 1,000 high net worth individuals who have $1 million or more to invest.
A whopping 52 percent of high net worth individuals are worried about being taken advantage of by wealth managers and 55 percent worry they'll lose money, according to the survey. And this could translate into a new opportunity for the budding class of robo-advisors out to compete with Wall Street.
"Unfortunately, the vast majority of wealth managers today are failing to service the breadth of their clients' needs," said Michael Spellacy, senior partner at PwC.
Distrust of human malfeasance could translate into an enormous advantage for online wealth managers like Betterment and Wealthfront, which use automated investing to tailor users' accounts to their risk tolerance and performance goals. Younger consumers of wealth management services are more likely to adopt a digital product, the PwC survey said.
More than 60 percent of the survey's respondents, who were 45 years of age and younger, said it was important that their wealth manager had a "strong digital offering." That compares to about 45 percent of investors aged 45 and older.
The so-called robo-advisors may run into trust issues of their own. The study said 61 percent of respondents believe apps use their personal data.
"There's a significant level of concern among high net worth individuals about the security of their information," Spellacy said.
Big banks are taking notice of the digital shift, and are pairing off with online wealth managers accordingly.
In May, UBS invested in , an online advisor, and partnered with the start-up to develop tech and investing tools. Goldman Sachs, which has increasingly been building out digital offerings, earlier this year acquired Honest Dollar, a Texas-based retirement planning service, in a transaction where the terms were not publicized. And, last year, BlackRock bought FutureAdvisor, another online wealth management service. Some of it comes after institutional players struck out on their own to build online products that disappointed clients.
"You've seen dabbling, by most major players, to build [online wealth management products], unsuccessfully," Spellacy said. "We expect to see significant levels of consolidation."