The top conversations on APViewpoint last week were started by Michael Edesess, Beverly Flaxington and Dan Solin, and included comments from Forbes and CNBC contributor Carolyn McClanahan. They generated thoughtful discussions on: the academic failure to understand rebalancing; the hidden cues that unlock better client communications; and how female advisors should dress to win clients.
Michael Edesess’ The Academic Failure to Understand Rebalancing received 14 comments about his recent article on how imperfect mathematics have led advisors to overestimate the benefits of rebalancing. Members agreed with Edesess’ argument that advisors should be aware that mathematical arguments are sometimes used as a sales pitch, and advisors urged their peers to “consider the distribution [of a mathematical analysis] rather than emphasizing particular summary statistics.” In response to Edesess’ conclusions about the limitations of rebalancing, some advisors asked “on what prudent basis [should] decisions [be] made as to which asset classes deposits to the portfolio should be added and withdrawals subtracted?” Some advisors explained that, when using a buy-and-hold strategy, one obvious strategy would be to simply add to or withdraw from asset classes in a way that does not change the current mix. However, others suggested that advisors can bypass the rebalancing issues in other ways, such as using “unfettered” strategies that strike a good balance between risk management and return.
APViewpoint hosted another wellattended webinar on August 18, The Hidden Cues that Unlock Better Client Communication, presented by The Human Behavior Coach® Beverly Flaxington. In this webinar, Bev explored various aspects of "people reading," and outlined specific steps advisors can take to connect with clients more effectively. Bev explained that there are different types of behavioral styles, ranging from individuals who are dominant and assertive to those who are warm and team-oriented. She recommended that advisors better understand their own communication style and learn how to adapt to the styles of their clients. Bev will be answering questions about her presentation in this follow up conversation, and a replay of the webinar can be viewed here.
Dan Solin’s How Female Advisors Should Dress to Win Clients has provoked 53 comments, mostly from female advisors, as it continued into its second week of discussion. Advisors argued that the recommendations presented by Solin in his recent article don’t align with the common attire of female financial advisors. Members agreed with Solin’s claim that first impressions are very important and that they are largely affected by appearance, but argued that the professionals cited by Solin had an inherent bias towards high-end clothing and were “targeting a very narrow client demographic.” Some advisors even suggested that the apparel highlighted in Solin’s article might make prospects “suspicious of a sales mentality rather than a source of competent advice.” Members also suggested that Solin’s use of the word “expert” when citing the opinions of stylists was inappropriate, and urged him to recognize that the opinions of the “professionals” he based his analysis on are not necessarily aligned with the views held by most of the population.
Marianne Brunet is a financial markets analyst with Advisor Perspectives.
