There have been many restrictions placed on the normal rhythms of life in response to the COVID-19 pandemic. The interactions we typically take for granted such as going to restaurants, spending time with friends, working out at the gym, and traveling on vacation have all been curtailed in an effort to tame the pandemic.
While crisis-level activity has largely subsided, advisors remain very active relative to "normal" levels of activity we saw during the bull market run.
During these volatile market swings and stay at home orders for investors, advisors remain very active. Investing activity last week was still two times average transaction volume as compared to the past 18 months. While the equity markets showed strong performance last week, advisors remained in a neutral risk stance. Cash as a percentage of portfolio dropped to 5% from 6.2%, a nearly 20% drop in cash allocations.
Advisors are very slowly reducing cash levels. Their attitude toward risk is neutral, repeating last week's trend, in that both risky and non-risky assets saw nearly zero net flows.
Advisors remain very active making small changes to client portfolios, harvesting tax losses, and fine tuning risk tolerance, while generally keeping their clients invested to meet their objectives.
As a child, I remember seeing my mother’s wooden plaque of The Serenity Prayer that she kept above our kitchen sink. For those not familiar with this popular prayer, it reads...
What if I told you that there’s a formula that is exceedingly easy to remember and could positively impact almost every decision you make? What if I told you that there is a formula for happiness?
Consider something you’ve always wanted to do but you’ve put off doing because it scares you. In fact, just think of something you’d eventually like to do but haven’t yet, since you may not even be aware of all your reasons for not having embarked on that journey just yet.
It is my hope that as we are better able to map the landscape of love and money, we will increasingly have a scaffolding for having better conversations about where and why our attitudes may differ.
Have you had a disagreement with a loved one recently about money? If so, you’re hardly alone. An American Express survey found money took the top worry spot among married couples (33%), far outpacing the second-place intimacy (11%), children (9%), and troubles with in-laws (4%).
For many years, the prevailing advisory remuneration model has led financial advisors to look at just one variable – investable assets – when deciding whether or not to work with a client.