From a contrarian investing view, everyone remains bearish despite a market that corrected all of last year.
How many times have your clients or employees stalled and failed to take action? And then their stall had you managing the fallout?
Are persistent outperformance and long-term alpha closely linked or is it possible to deliver alpha without being persistent?
Older advisors need to step aside and make room for the up and comers.
No advisor would dream of engaging in the kind of behavior that occurred at Purdue University in early December.
Advisors can illustrate the risks in single-stock positions by educating their clients on the historical evidence that demonstrates diversification is the prudent strategy.
Enforcing big, complex change within an organization is an ongoing struggle, and the rate of success is alarmingly low. What is the challenge?
Market watchers on Wall Street attribute this week’s stock selloff to the insidious threat of recession.
I have been in this profession for 25 years and I’ve never seen anything like the young people we are hiring today – lazy, unmotivated, but still thinking they deserve the trophy.
One syndrome is surprisingly common among the children of high-net worth parents: “failure to launch.”
Markets provided investors with a dozen lessons in 2022 (and a bonus one in the postscript).
My firm’s leader had a major unexpected undiagnosed medical issue. He walked out of the office one day and I haven’t seen him for four weeks.
At KCR, we believe in the Quantamental Investment approach–a strategy that leverages the most useful aspects of both quantitative investing and fundamental investing.
In preparation for the new year, let’s look at the importance of celebrating what’s been done and learning from mistakes made.
I’ve not written much on New Year’s resolutions because “white knuckling” any meaningful behavioral change is rarely successful.
With 2022 finally over, and not soon enough, such is an excellent time to review our “investor resolutions.”
Contrary to what financial theory predicts, new research from Europe shows that the elderly accumulate assets later in life than expected, likely because they want to leave bequests, are receiving pensions, or are reluctant to part with assets such as their homes.
Managing your portfolio has more to do with gardening than you might imagine.
"Travel on all roads and streets changed by +0.1% (+0.3 billion vehicle miles) for October 2022 as compared with October 2021. Travel for the month is estimated to be 286.0 billion vehicle miles." The 12-month moving average was mostly unchanged month-over-month and up 3.0% year-over-year. If we factor in population growth, the 12-month MA of the civilian population-adjusted data (age 16-and-over) inched down 0.1% month-over-month and was up 2% year-over-year.
During our holiday party, one of my longest tenured advisors came up to me to say how appalling he thought it was that we held such “an expensive party.”
Allan Roth’s recent article, The 4% Rule Just Became a Whole Lot Easier, promises too much, makes inaccurate comparisons and blurs the notion of risk.
From the earliest days of artificial intelligence (AI) and machine learning (ML) in the 1950s, practitioners have spoken of using it for investment fund management.
The client had been with us for more than 15 years. When she left, I called her to ask if there was anything we could have done differently or better.
The pay negotiation season is looking increasingly fraught this year as workers fret about 8% inflation — and their job security.
It's the end of the world!
“95 years ago, your crystal ball reveals: Russian debt default, LTCM fail, DotCom implosion, 9/11 attacks, financial crisis and great recession, pandemic killing millions, 3 market crashes. Would you put your money into stocks? No? You missed a 10X return.”
We have someone we have been carrying for quite some time and we need to ask him to leave.
Mohamed El-Erian sees the rollercoaster ride in financial markets, with Friday’s surprisingly strong US jobs report producing the latest drop, as another lesson for Chairman Jerome Powell and his Federal Reserve colleagues.
As we enter the end of the year to celebrate other holidays, consider improving your emotional intelligence (EQ) and connecting with your clients in deeper and more fulfilling ways.
This article explores the efficacy of PLIBs against a retirement income strategy that does not include an annuity, as well as strategies which allocate to either a SPIA, a DIA, or a GLWB. I used a utility framework for this analysis.
With all the market ups and downs, we are not as profitable as we have been historically.
It’s close. Exchange is only a few months away. With the financial community gearing up to descend on the Fontainebleau in Miami, Florida, February 5th through February 8th for the largest advisor-centric event in the country, advisors have a rare opportunity to mesh minds with the most creative people in financial management, fintech, and investing.
Over more than two decades, Vanguard Advisor's Alpha® has shown how advisors can add value, or alpha, through relationship-based services such as financial planning, discipline, and guidance, rather than by trying to outperform the market. Vanguard’s Investment Advisory Research Center, led by Fran Kinniry, is charged with exploring how advisors provide value to investors.
This year has served as a harsh reminder of why so many investors seek a trusted advisor to navigate their financial journeys. During market declines, investor emotions easily crowd out wisdom and long-term thinking. However, through financial planning and behavioral coaching, advisors can help investors improve their chances of reaching their long-term financial goals.
Why do team members often resist change?
What is new about my thinking on money scripts is that, unless they are generational, they are not written for us by someone else.
How come the focus is always on the leader and never on the team members getting on board and playing their part?
October started strong and then slid to new lows but managed to rally back toward the month’s end.
In 2021, enthralled by rank stock speculation, the media returned to a familiar refrain that occurs every time there is a bubble: that Warren Buffett is over the hill and has lost his touch.
I will share some insights for leaders in large and small firms to make change happen, manage results and continue to grow your businesses.
We are debating whether to expand our niche or whether to expand at all.
Dietrich spent the previous 15+ years in senior business development roles with Morningstar and brings extensive experience in indexing and direct indexing across the asset management and wealth spaces
Your inability to recognize the biases you have prevents you from managing a more successful practice.
I find it hard to like someone when I don’t know the context of what I would do to interact with them.
Daniel Kahneman and Richard Thaler won Nobel prizes for their work in behavioral science, propelling that discipline to the forefront of the advisory profession. But new research shows that behavioral science produces results that are no better than a simple model, and mutual funds based on it are no better than an index fund.
I was recently approached by a recruiter about a president position at another advisory firm.
“Market instability” remains the most significant risk to central banks globally.
I’ll share some insights as you encourage your team to be more open-minded and innovative and to help with facilitating change efforts within your organization.
Our leadership is forcing changes on us at a rapid pace that don’t make sense.
While everybody's been sweating over the housing and labor markets, the office market has been streaking toward a hard landing.
Frequent flyers are accustomed to turbulence on some flights. Indeed, many expect it. Despite such anticipation, however, the turbulence can once in a while create significant anxiety among even the most seasoned travelers.
Corporate profit margins finished 1999 at just a shade under 6% of U.S. GDP.
The leading tail-risk potential is the increased odds that high inflation remains stubborn, and the Fed continues to fight those odds aggressively.
How can we design and deliver our advice in a way that clients implement it? Enter the commitment device.
I need someone to tell me if it’s time to get off this treadmill or if things will change and I can go back to being exhausted only on Thursdays and Fridays instead of every day of the week.
Innovation was the market darling thematic for many years leading up to COVID.
Direct indexing is the fastest growing segment of the asset management industry. In this interview, Brandon Thomas of Envestnet explains how direct indexing helps clients gain low-cost, tax-efficient exposure to asset classes, ESG and quantitative strategies.
There are serious, well-documented mental health issues suffered by financial advisors that have been exacerbated by the pandemic.
Several of our team members have had some very difficult life experiences over the last year.
Investor risk tolerance drives portfolio decisions, yet many financial advisors are rightly concerned about the accuracy of risk tolerance assessments. Why is it so hard? How can we get it right?
The war against inflation will be won when we no longer need to worry about it.
As one of us points out relentlessly, risk isn’t a number, rather it is a notion or a concept.
We are frustrated by the lack of new clients this year.
The classical notion of 1940 investment advice has been hijacked and replaced by the SEC with a weak, distant cousin.
Buy stocks in a bear market.
I will share some ideas for how create a special event to honor a client.
We have a team of advisors who are the kings and queens of gossip.
The first six months of 2022 have served as a stark reminder that market outlooks can quickly shift. Advisors who want to retain business must now prepare clients for the possibility of greater volatility, abiding inflation and muted returns. Clients have many reasons to be skeptical of change and financial advisors (FAs) who don’t have these conversations now risk having painful discussions with disappointed investors. AllianceBernstein Advisor Institute’s, Ken Haman discusses key insights about human decision-making and research in behavioral finance to look at the practical challenges of managing client trust during uncertain times.
A close look at the historical data suggests that the excess performance of stocks relative to bonds occurred mainly in two historical periods and has been inconsistent over the last 25 years.
We are trying to grow our marketing team.
The views you often read on advisor compensation models and their future are misguided.
In the last two decades as an investment advisor, I’ve often been wrong – about markets, products and their providers, investors, the government, and the advisory business. Here are my top 10 items I’ve got wrong.
Some of our funds have underperformed, although we tout our ability to “not lose as much when the market goes down.” But we’ve lost way more than the market has over the last few weeks in a few of our strategies.
According to MPT, following certain steps leads to the optimal portfolio for the individual’s risk and return preferences. But, like executing a perfect squat, knowing how to build the optimal portfolio is not enough.
Given the Fed's enormous impact on markets and its extremely hawkish stance due to inflation, a well-reasoned inflation forecast is imperative for investors.
Have you seen a situation where the person running the advisor team is former college football star and every single story – I mean every one – is about football?
I recently was asked by Patrick Schotanus of Edinburgh Business School to participate in their inaugural symposium on the subject of cognitive economics. The symposium took place at Panmure House, the final residence of the great economist Adam Smith, and the theme was the Market Mind Hypothesis (MMH), which Patrick developed.
The leader of our firm is not a nice person.
Among the many factors cited in academic research, only a handful have been sufficiently reliable for use in asset pricing models. One of those is momentum. New research shows that it works globally – even in China, a country whose markets have not historically exhibited momentum.
The issue is that John is very involved in politics in our community and his political leanings are the total opposite of the rest of the family and of mine.
There’s no doubt what Monday’s biggest market news was in New York.
None of us can control markets, but it’s critical that our clients know how they have performed relative to appropriate benchmarks.
We have a terrible time with internal meetings. They don’t happen. They happen but there is no agenda.
The “Fear Of Missing Out,” or “F.O.M.O.” is a centuries-old behavioral trait that began to get studied in 1996 by marketing strategist Dr. Dan Herman.
We believe index funds have immensely contributed to investors by permitting them to capture beta inexpensively.
The Supreme Court’s decisions on abortion and gun safety reinforced how ideology polarizes politics and prevents civil discussion and progress. Market ideology has also polarized discussion and harmed advice standards.
I’m finding some questionable accounting as I am going through the financials from the last few years.
Incorporating a wide variety of portfolio risk mitigation techniques is essential to address unforeseeable macroeconomic challenges.
I’m having a hard time training one of our newer advisors on how to be a good listener.
I will demonstrate how financial advisors can combine behavioral finance and deep analytics to have a robust conversation with clients during financial turmoil, showing compassion and understanding on the one hand, while telling a compelling long-term story on the other hand.
Why would I work to increase the profile of an active fund manager? My reasons reflect the increasing pressure on advisors to differentiate themselves and demonstrate value.