Products January 24, 2007

Equity Comp Site Unveils Special Adviser Access Level

An equity compensation Web site has created a new adviser membership level that can help you better track and model stock options grants for your clients.
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A news release from myStockOptions.com said MSO Pro members can use data-entry wizards to enter their clients’ grant information into the portfolio tracker. Once they have entered the data, they can switch between clients when using the calculators and modeling tools, which let advisers crunch numbers and run projections, according to the company.

Advisers can communicate with clients in various ways, including customizable PDF reports and an online portal (myCompanyStock.com) where advisers can let selected clients view their grant records and use calculators and modeling tools themselves, according to the announcement.

Results graphically show a range of data, including net gains, exercise costs, and taxes. Advisers can then compare net gains at different stock prices and tax rates and print PDF reports, the company said

In a special tool called Scenarios, available only for MSO Pro Members, advisers can save results from the tools, storing various strategies for later review. They can save the stock price and as-of date that they entered or change them to current values every time they view the scenario.

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With the e-mail alert notices from the myAlerts tool, advisers can schedule automatic notifications for themselves and/or their clients to remind them of vesting dates, alert them to target stock values, and warn about upcoming expiration dates. Daily, weekly, or monthly e-mail summaries of stock grants can also be scheduled, according to the press release.

MSO Pro Members have access to myStockOptions.com’s library of content on stock options, restricted stock/RSUs, stock appreciation rights, employee stock purchase plans, and related topics in taxation and wealth management. A 20-question quiz offers six credits of continuing education for CFPs, according to the news release.

For questions about myStockOptions.com, contact Bruce Brumberg or Matt Simon at 617-734-1979.

The Markets January 24, 2007

Analysts: 2007 Soft Landing Should Boost U.S. Markets

U.S. and global stock markets should benefit from an economic soft landing in 2007 and are poised for further growth, according to financial analysts shared at a recent conference.
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Speakers at the fifth annual Dow Jones Indexes/ STOXX Ltd. Global Economic Outlook agreed that was the most likely economic direction for the year, despite concerns over global inflation, the struggling U.S. dollar and a potential bust in the commodities market, according to a news release.

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“The soft landing of the U.S. and global economies seems to be over and balance of risks seems to have shifted towards stronger growth,’ said Nariman Behravesh, Chief Economist and Executive Vice President of Global Insight. “Assuming that commodity prices do not snap back from current levels, the implications of this scenario are bullish for earnings in developed markets, but less rosy for emerging markets, which benefited from the commodities boom.’

For his part, Michael Hartnett, Global Emerging Markets Investment Strategist at Merrill Lynch, looks for a particularly strong 2007 performance from emerging markets – particularly in Asia. “We are unequivocally bullish on the secular outlook for emerging markets,’ he said. He also identified key risk factors that could harm performance in this region: global inflation, the strength of the U.S. dollar, a potential credit event and a protectionist policy with emerging market countries.

Meanwhile, the U.S. dollar’s 2007 outlook depends mostly on whether the U.S. economy will have a soft or hard landing. Ironically, a hard landing could be best for the dollar, since it would likely bring a narrowing of the current account deficit and repatriation of U.S. capital invested abroad,’ said Rebecca Patterson, Global Currency Strategist at JPMorgan Chase.

“However, we expect the dollar to stay on the defensive as long as investor appetite for risk stays positive, which in turn would lead to a widening of the deficit, and net foreign direct investment and equity continue to head overseas,’ Patterson said. Although the dollar has dropped about 25% since its 2002 peak, currencies tend to revert to fair value in the long term and the dollar will bounce back in the coming years, Patterson said.

Finally, Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, said she expects the unprecedented levels of liquidity that drove both U.S. and international markets higher in 2006 to continue, but warns investors of slowing 2007 growth. Sonders recommends investors focus on health care, technology and consumer staples stocks.

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