Trends in Advisor Behavior During Market Volatility - Week of March 30, 2020
After building up cash and rebalancing portfolios over the past 5 weeks, advisors activity moderated last week. Advisors are still working hard to help clients update their risk tolerance. Overall trade volume by dollar amounts is down roughly 50% but still 200% of the year to date weekly average. We still believe the majority of trading is related to advisors helping clients be more tax efficient by harvesting capital losses and changes to client risk tolerances. We see no pervasive signs of irrational buying or selling and think advisors are managing client's expectations in a very consistent way.