Wedbush Securities SVP and Los Angeles Branch Manager, Douglas Pryor Earns CIMA® Designation
Los Angeles, CA – March 9, 2022 – Wedbush Securities, one of the nation’s leading independent financial services providers, is pleased to announce that Senior Vice President and Branch Manager, Douglas Pryor, has earned his Certified Investment Management Analyst (“CIMA®”) designation. This honor is bestowed upon Financial Advisors by the Investment & Wealth Institute for those who have met all the requirements and passed the qualification examination. It continues to be the highest level of advanced investment education for client-facing advisors. Douglas has more than 27 years in financial services with 20 of those years also serving as a branch manager. Before joining Wedbush in 2015, Douglas held positions at Morgan Stanley and Stifel Financial. While at Stifel, he started the Orange County branch, which he grew within three years from being the sole employee to having 9 advisors and 4 staff members in his office and recruiting another 9 advisors to other offices. In every role, Douglas helps his clients make smart, informed investments to build their wealth. Douglas states, “It’s an honor to earn the CIMA distinction. It has provided me with the additional experience and sophisticated knowledge, to further help my clients achieve their investment objectives.” Regional Executive, Frank Epinger adds, “Douglas is an integral part of the success of our Los Angeles and Honolulu wealth management offices. Having the CIMA distinction sets him apart as a branch manager and as an advisor, and we couldn’t be happier for him in this accomplishment.” Douglas Pryor, CIMA® Senior Vice President and Branch Manager About Wedbush Securities Since our founding in 1955, Wedbush has been a leader in the financial services industry, providing our clients, both private and institutional, with a wide range of securities brokerage, wealth management, and investment banking services. Headquartered in Los Angeles, California with 100 registered offices and nearly 900 colleagues, the firm focuses on client service and financial safety, innovation, and the utilization of advanced technology. Follow us on LinkedIn, Twitter, Facebook, and Instagram.
Blockchain – Current & Future Applications
Matthew Doull – Managing Director, TMT Investment Banking says, “Blockchains are the part of the Internet that you can’t cut and paste or erase. They make it possible for shared virtual spaces to be persistent and for the creation of truly valuable digital assets.” Blockchain is a distributed digital ledger that can be used to store a variety of data and information. A blockchain allows data to be stored and distributed, but not duplicated. This is why a blockchain network is used with cryptocurrencies and with NFTs. A blockchain network is a totally decentralized, secure database. It is a secure, digital record of transactions for cryptocurrencies, NFT ownership and DeFi (Decentralized Finance) smart contracts for crypto and other types of transactions. Blockchain has many other potential applications including a secure way to transmit documents such as contracts. Many think blockchain and its potential are just in the infancy stage. The metaverse and web 3.0 will rely on blockchain technology to a great extent. Current blockchain applications Probably the most well-known current use of blockchain technology is in connection with crypto and with NFTs. Blockchain provides a reliable, ongoing digital record of transactions and ownership in these areas. As the use of crypto commerce becomes more widespread, an accurate record of ownership and transactions will become increasingly important. Blockchain is emerging as a tool in the food industry supply chain. Blockchain has potential to help in a number of areas including: Improving the traceability of food sources, a factor in ensuring food safety. Helping grocers and others in their supplier selection process. Providing greater pricing transparency throughout the supply chain. Verifying ingredients used in producing certain foods and food items. A number of major players in the industry use blockchain technology, including Walmart, Kroger, Kraft Heinz and Nestle. This number is expected to grow exponentially over the next few years. Blockchain has many applications in healthcare, not the least of which is improving the ability to share and transmit sensitive patient data in a secure way. By some estimates, the use of blockchain in healthcare could save providers $100 billion annually in costs related to IT, operations and patient data breaches. Pros and cons of blockchain Blockchain has a number of pros and cons, here are a few. Pros: Transaction speed and 24/7 access. Security as blockchain is a distributed ledger that creates multiple database copies across a wide network. There are no third parties or intermediaries involved in the process. Cons: Data is not invulnerable to attack; technology continues to evolve for those looking to breach this data as well. Blockchain and related technology uses a lot of electricity which could be harmful to the environment. The lack of a central intermediary for blockchain data makes account recovery difficult, if not impossible if a user loses their key. Future applications of blockchain Many say that the sky’s the limit in terms of future blockchain applications. Here are a few examples. Web 3.0 is the next iteration of the internet. It will leverage machine learning, artificial intelligence and blockchain technology to create more connected, intelligent and open websites. Web 3.0 is still evolving but many major tech giants are actively engaged in exploring applications and technology for this next iteration of the web. Many believe that the introduction of web 3.0 and the continued use and development of blockchain technology could help facilitate the widespread adoption of crypto as an accepted form of payment. We’ve seen a few big companies begin to accept crypto as payment and this is predicted by many experts as a wave of the future. Many industry experts are looking to blockchain to largely replace the need for passwords and as a way to enhance user authentication on the web. This could have huge implications for not only individual users, but across countless industries that rely on a secure network. The nature of blockchain will lend itself to many applications in our daily life including playing a role in real estate transactions, voting records, and healthcare just to name a few. While the widespread use of blockchain technology could have a favorable impact on many industries and individuals, those who lack access to basic technology may find themselves even further behind. To learn more about the impact of blockchain on your investments, please contact your Wedbush Securities to discuss how blockchain could have an impact on your portfolio. Looking to build a financial plan based on your goals while considering market trends and risk factors? Click here to check out our approach to Wealth Management. Disclosure These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. The information in these materials may change at any time and without notice.
Is ESG Investing Here to Stay or Just a Fad?
ESG stands for Environmental, Social and Governance. ESG investing entails looking at companies and funds that invest based on one or more of these principles. How ESG investing differs from ordinary investing ESG represents non-financial factors that investors use to measure a company’s or a fund’s level of sustainability. Environmental refers to the company’s business practices relating to the environment, social refers to how the company treats those both inside the company and outside and governance refers to how the company is run in terms of shareholder voting and other factors. Many say that ESG is the next step along the investing spectrum from SRI or Socially Responsible Investing. SRI does take into account the social and environmental aspects of a company or a fund. SRI also actively avoids investments in companies that investors feel don’t meet their criteria as being socially responsible. Examples might be tobacco companies or those producing alcoholic beverages. Some say SRI is more about activist investing while ESG investing focuses on how a company’s adherence or lack thereof to ESG factors impacts the bottom line. There are several companies that calculate ESG scores and all do so in slightly different ways. They are designed to show how well or poorly a company’s performance regarding applicable ESG metrics ranks compared to other companies. Looking at ESG scores can provide investors with a quick way to compare ESG performance, but it is just a starting point. Investors who focus on ESG metrics will tend to take this into account when screening potential investment candidates. Types of ESG investing ESG stocks represent companies who score high on the various ESG factors. Besides having high sustainability ratings, companies that score high on ESG factors often tend to be well run and profitable. For example, a company that scores high in the environmental factor will likely not be faced with government levied fines or penalties for polluting the environment. ESG funds invest in companies that tend to score well on one or all of the ESG factors. The fund managers use ESG as one of their screening criteria in choosing stocks to hold in the fund. The Future of ESG Investing To date, companies and funds with high ESG scores have performed well in terms of their returns. Morningstar data has shown that ESG funds have demonstrated lower volatility and solid returns on equity. Many of these funds have shown above average longevity as well. Investors want more transparency to back up the ESG claims of companies and fund managers. The practice of greenwashing has come under fire, this refers to making unsubstantiated claims about a company’s or a fund’s adherence to ESG factors. ESG 2.0 is about greater ESG transparency. The use of technologies such as blockchain can help in storing ESG related data and making this data more accessible to investment advisors. This will enable advisors to use this data to discuss the impact of investing decisions regarding sustainability issues with their clients. Regulators are also making the accurate disclosure of ESG data a higher priority. The SEC is expected to increase their disclosure requirements on issues like carbon emissions and to delve more into money manager’s ESG classifications for the stocks in their fund’s portfolios. They are concerned that investors have accurate ESG data upon which to base their investing decisions. Increased regulatory scrutiny combined with housing ESG information on blockchain and other databases will provide investors with greater accessibility to ESG information upon which they can base their investing decisions. Incorporating ESG into your portfolio There are a number of ways to incorporate ESG investing into your portfolio. Regardless of how you proceed here, it’s still important to do this within the context of your asset allocation and overall investing strategy. ESG investing is more than just a passing fad, it has become a mainstream investing strategy. ESG mutual funds are one way to do this, individual stocks adhering to ESG principles are another. Perhaps the best solution for investors who are interested in incorporating ESG friendly investments into their portfolio is to discuss this issue with their financial advisor. If you are interested in ESG investing as part of your strategy, contact your Wedbush financial advisor to discuss the best way to incorporate ESG investments into your strategy. Looking to build a financial plan based on your goals while considering market trends and risk factors? Click here to check out our approach to Wealth Management. Disclosure These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. The information in these materials may change at any time and without notice.
The Russia-Ukraine Conflict: How It Might Impact the Markets & Your Portfolio
Anyone watching the news is acutely aware of the conflict gripping the world surrounding Russia’s unprovoked invasion of Ukraine. Besides the implications for world peace and the horrible suffering this inflicts on the Ukrainian people, there are implications for the financial markets in general, and your own portfolio specifically. Deborah A Silva – Financial Advisor of The Lee Group of Wedbush Securities says, “The conflict between Russia and Ukraine has magnified market volatility this year. It’s natural to be fearful and have anxiety over what might happen to your investment portfolio. While the fear is normal, don’t let the emotion of that fear guide your decision making.” Deborah offers some very sound advice for investors. As we’ve seen in countless other situations involving market turmoil, investors who make rash investing decisions driven by panic often regret these decisions down the road. An interconnected world As investors have seen time and time again, financial markets are global. Russia’s invasion of Ukraine certainly reinforces this. Even before the onset of this conflict, markets have been volatile in 2022. This situation has exacerbated this volatility. Beyond the potential for an escalation of this conflict to other parts of Europe, this situation is having an impact on a number of industries and sectors of world commerce. Potential market and sector impacts Certainly, the conflict has already had at least a short-term impact on the supply and the price of oil. Oil prices have surged since the onset of this crisis and show no signs of pulling back in the near term. The price of oil and other supply chain issues arising from this conflict have served to fuel inflation that was already at historically high levels. This inflation has impacted the price of automobiles, food on the grocery store shelves and the price of other essential goods and services. Inflation is inherently bad for the economy and for the markets. Another area of concern that might be driving some of this volatility is the fear of cyber-attacks by Russia in the wake of sanctions imposed on their economy by the United States and our allies. One area where the impact might be somewhat positive is on the interest rate front. Coming into 2022, the Fed had indicated it would raise interest rates several times over the course of the year. There are indications that this might be scaled back a bit due to the crisis in Ukraine. This would keep interest rates lower than they might have been. This could have a positive impact on a range of sectors including housing. Should Investors expect continued volatility in the markets? Whether or not we see continued market volatility remains to be seen. This will depend on a number of factors, not the least of which is the resolution of the situation in Ukraine, plus any lasting impact on the economies of the countries most impacted. Chris Mone – EVP, Head of Wealth Management of Wedbush Securities says, “Given the geopolitical instability unfolding with Ukraine conflict, the recent market volatility and fear of a widespread increase in cyber-attacks, we are encouraging our clients to avoid reacting impulsively to short-term volatility and to stay focused on their long-term personal objectives and plan. Our advisors have been proactively reaching out to clients to help them understand the impact of these global events, as they relate to economic and market risk, and ensure they are well positioned to achieve their long-term objectives.” This is sound advice from Chris. Overview of Potential planning implications for investors and clients It’s important to remember that geopolitical events dating back to 1970 have rarely had a lasting impact on the markets. In fact, on average, the S&P 500 was higher a year later in spite of the short-term impact of these events. A sense of perspective is always important for investors, perhaps it is never more important than during a situation like this. Silva suggests, “You’ve created a thoughtful investment plan and strategy with your advisor. Talk to your advisor about what you are feeling. In most cases, your advisor will counsel you to “stay the course.” And remember, time IN the market is more important that TIMING the market! Talk to your advisor!” We urge you to contact your Wedbush advisor to discuss your situation in the wake of this market volatility. Looking to build a financial plan based on your goals while considering market trends and risk factors? Click here to check out our approach to Wealth Management. Disclosure These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. The information in these materials may change at any time and without notice.