Financial Planners & Investment Advisors NAICS 523940

Nov 19, 2025 - JPMorgan Chase Revising 60/40 Investment Model

• JPMorgan Chase is rethinking the traditional “60/40” investment mix (60% stocks and 40% bonds) because both stocks and bonds may no longer reliably balance each other. In its 2026 outlook, the bank suggests that alternative investments, especially private credit (loans made directly to companies outside public markets), should now be considered a core part of a portfolio, not just an optional add-on. Private credit can offer higher returns than public debt and may help protect investors if stocks fall and bonds don’t provide enough stability. JPMorgan also highlights other alternatives, like secondaries (reselling private-market stakes) and opportunistic debt strategies, to add extra resilience. However, critics warn that these investments come with risks, including less liquidity, more complex pricing, and potential difficulty in accessing funds, meaning they aren’t suitable for every investor. Overall, the bank signals a shift toward more flexible and diverse approaches to building long-term portfolios.
• Americans are increasingly turning to AI for personal finance help, using tools to find unclaimed money, manage budgets, and improve financial literacy, according to a recent survey by Intuit Credit Karma. The study found that 65% of US adults who use AI have asked it for financial advice, with adoption particularly strong among younger generations including 82% of Gen Z and Millennials. Many users see positive results: about 80% say following AI advice has improved their finances, whether by helping them save, track spending, or uncover overlooked resources. Risks remain significant, though. More than half (52%) admit that AI-driven guidance has also led them to make financial mistakes, often due to flawed, generic, or misleading responses. Financial experts caution that AI should be treated as a supportive tool rather than a replacement for professional advice, particularly when navigating complex financial decisions.

• Markets revenue for US banking giants have soared due to stock market volatility resulting from the whipsaw trade policies of the Trump administration. Banking’s Big Five - JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and US Bank - have earned a total of $34 billion this year in markets revenue, a 17% increase. Trump’s on-again, off-again tariffs have sent the stock market into a price roller coaster and banks are cashing in on that trading revenue. Goldman Sachs alone has seen a 22% increase in trading revenue in Q2, mostly in equities financing (loaning money to hedge funds to support their trading activities). There has also been an uptick in IPO activity in Q2, which had declined across industries earlier in the year because of the economic uncertainty. In addition, M&A activity has picked up, according to industry experts, after a global 12% decrease in the first half of 2025.
• Portfolio management and investment advisor wages for nonsupervisory employees increased 4.5% year over year in July 2025 (per the US Bureau of Labor Statistics) as bonus packages became more generous than they were in 2022-23. Bonus pools are critical compensation elements to investment bankers and account for a significant portion of total compensation. The overall bonus pool spiked to $42.7 billion in 2021 (per the New York State Comptroller) before it course-corrected to more standard levels. The bonus pool was estimated to grow 7% in 2024 to around $36.1 billion. A recent survey of investment banker pay by recruiter Prospect Park Partners found junior associates with a starting salary of $110K can earn up to 50% of base salary in bonuses. At the VP and up level, bankers can earn bonuses equal to or higher than their base salary, with the average bonus being $1.7 million.