June 17, 2015What Behavioral-Finance Folly Are You a Sucker For?
Here are some of the commonest behavioral-finance biases. Which one is your Achilles’ heel?
Confirmation bias. My research stops when I reach the conclusion I was looking for.35% Optimism bias. I may be wrong sometimes, but I’m rarely in doubt.18% Recency bias. My vision of the future looks uncannily like the present.
June 16, 2015What Do You Do With Clients You Can’t Stand?
Most advisors have a few clients who fill them with dread, boredom or loathing. What’s the best remedy?
Fire them — gently, of course. Then take measures to avoid such clients in the future.27% Keep them in-house, by handing them off to colleagues and carrying on as you try to overcome your aversion.
June 9, 2015Where Do You Stand on Using Closed-End Funds?
Closed-end funds are a different sort of investment animal that can help to diversify client portfolios. Do you like to use them?
No way. These funds are fraught with complexities and incongruities.79% Sure. CEFs are great for giving clients more exposure to different asset classes at attractive pricing.
June 2, 2015Do You Invest Money Like an FT 400 Advisor?
The biggest chunk of client assets held by FT 400 advisors are invested through individual stocks and bonds, not funds. Do you side with these elite brokerage-based FAs?
I do. I like crafting individual portfolios for my clients, rather than grabbing stuff off the shelf.61% No way. Funds provide broad exposure to financial markets, with less exposure to blowups at individual companies.
June 1, 2015Where Can You Improve Most as an FA?
If you could get better at any one part of your job, what would it be?
Communication. I wish I could explain myself better.18% Investing. I wish I had the resources to be more hands-on and less plug-and-play.27% Office politics. I need to get better at “the game.”
May 28, 2015What Will Happen to Stocks When the Fed Lowers the Boom?
There’s talk that rising consumer prices could give the Fed an opening to raise rates this summer. If that happens, will it make a difference in the stock market?
Nope, it’s already baked in.71% There’ll be a bump, but nothing serious.11% The market’s mainly up because of Fed QE, so there’ll be an ugly drop — just watch.
May 27, 2015What’s the Best Approach to Private-Equity for Your Clients?
How can wealthy clients best invest in private-equity deals involving properties and businesses?
Look to individual ventures driven by friends, families or our in-house research.54% Hook in with big PE funds that offer smorgasbords of private-investment opportunities.
May 20, 2015Does Active Management’s Rise This Year Change Your Mind?
New Morningstar data suggests active funds are outperforming passive funds in 2015. How does this affect your portfolio strategy?
It doesn’t because it’s only a hiccup.53% It’s at least a call to rethink some bull-market assumptions.
May 19, 2015How Would You Feel About Working on a “Mega” Team?
According to the FA-oriented gossip site AdvisorHUB, Wall Street brokerages are encouraging practitioners to form bigger teams — of eight or more people — to retain assets. Would that work for you?
Sure, a deeper bench means I could actually enjoy some downtime.70% No way, I’d never be able to break free.
May 12, 2015Does Your Firm Segment Clients?
Most advisors divide up their client base by wealth, profession or some other criterion. Do you?
Yes, we tier our fees and services depending on client assets.33% Yes, we serve a couple of client niches, with different needs.0% No, all our clients get similar services and pay the same fees.