Direct indexing, an investment strategy once reserved for the wealthy, is now becoming accessible to Main Street investors. By buying individual stocks to replicate an index like the S&P 500 or Russell 2000, investors can customize their portfolios and exclude companies that don't align with their views. Direct indexing also offers tax-saving benefits through tax-loss harvesting, where investors sell losing stocks to offset capital gains. With technology advancements and low trading costs, more people can now take advantage of direct indexing to potentially save thousands of dollars in taxes each year.
The Massachusetts Supreme Judicial Court has upheld the state's fiduciary duty rule, which requires brokers to act in the best interests of their clients. The court's decision reverses a lower-court ruling that struck down the rule and holds Robinhood accountable for violating it. Better Markets, a non-profit organization advocating for investor protection, filed an amicus brief in support of the rule. The court rejected claims that the rule exceeded the Secretary's authority and found that it is not preempted by the SEC's "best interest" rule. This victory is seen as a significant win for Main Street investors and highlights the need for stronger investor protections nationwide.
Main Street investors are betting on a comeback for regional banks, despite concerns of a possible recession. JPMorgan CEO Jamie Dimon remains bullish on the US economy, citing strong consumer spending and low unemployment.
