In this episode of Wisdom Shared, Charlie Parker, and Head of Research at WisdomTree in Europe, Pierre Debru, explore the rise of exchange-traded funds (ETFs), and why they matter for financial advisers.

The Federal Reserve raised rates by 25bp to 3.75–4.00% on 16 September, in a unanimous decision and the first increase since 2023. Its projections have prompted markets to reassess the outlook: twelve of eighteen participants expect one further increase this year, while four expect two and the remaining two expect no further rise. The Committee does not project inflation returning to target until 2029.

The two big stories of the week have been AI and the less eye catching but perhaps more impactful move in bond yields.

Strong jobs data raises the odds of a September hike After months of a cooling labour market, US job growth accelerated sharply in August, catching markets off guard. Nonfarm payrolls surged by 162,000, nearly three times the 56,000 economists had forecast, with an additional 55,000 in upward revisions to June and July.

Investors are facing a good set of problems right now. Growth is stronger than expected, earnings have been robust, and employment is holding up. In an ordinary year, each of those would be an unambiguous positive. This year, each one is also making life harder for policymakers as strength like this pushes up yields, keeps inflation stickier than anyone would like.

This podcast is for professional advisers only. In this episode of Wisdom Shared, Charlie Parker, Head of Albemarle Street Partners, and CIO Fahad Hassan discuss why government bond yields are rising, and what the AI investment boom has to do with it.

Financial advice is often discussed in terms of markets, products and performance. But some of the most valuable moments in advice can be much simpler: helping someone see something about their life and future that they have not yet recognised themselves. Over the past year, we have been asking financial advisers about the best moments they have had with clients. Again and again, those breakthrough conversations have had one thing in common: timing.

What is the single biggest challenge facing your advice business over the next 12-24 months? We’re wondering how we’re going to cope with building this presence regarding the domestic and non-domestic characteristics. The penny is dropping with just a few advisers, but when it drops, it’s nuclear.