During turbulent days in the market such as these, the best thing an advisor can do is to keep their clients from making bad choices.
This, according to a new study in the forthcoming Journal of Wealth Management, is one of the key ways advisors help their clients navigate the volatile nature of stocks and bonds.
Authors Philip Maymin and Gregg Fisher liken RIAs to refrigerator “door locks” for compulsive eaters. As gatekeepers, advisors can be valuable in preventing investors from either putting on too much risk during good times or taking exposure off during market lows.
There’s lots to ponder in this short paper, but I don’t have time to discuss – I’m too busy calling my clients.