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.
One of the biggest challenges in investing is to stay focused and on course. Investors must look at the markets from a historical perspective for broader context, and to better understand why it is important to stay the course during both calm and perilous markets.
A Vanguard overview of how to implement behavioral coaching, including four timeless investing truths you can use to support client discussions.
Volatility isn't the villain some investors think it is. This article explains why and offers tips for helping clients stay focused on their long-term goals.
If history has shown us anything, it’s that the stock market is destined to go through another sustained down period. Are you and your clients prepared for a potentially more challenging investment environment ahead?
Hey, how are you doing? With the return of stock market volatility, an even better question is how are your clients doing?