This year’s economic death spiral has forced advisors to abandon some trusted methods of protecting their clients’ assets. According to Gail MarksJarvis for the Chicago Tribune, rebalancing portfolios has been a tried and true way of positioning clients for an upturn in the market. This time, however, investors are steering clear of the abyss, and advisors are holding off on rebalancing.
“Rather than the traditional fear that [clients] will miss out on an upturn, many professionals are focusing on the consequences of a downturn,” she writes.
“Some financial planners have learned that many clients were taking more risks than they could stomach,” she adds.
She suggests simply cutting back on stocks until the markets get stronger.