Advisor’s Value Pointed Out in Study
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.
About the Author
Ben Warwick, Aspen Partners
Veteran investment strategist Ben Warwick brings 20 years of investment management expertise to AdvisorOne.com in his blog, Searching for Alpha. His market and economic insights provide readers with an insider’s view on generating alpha through asset allocation, the use of strategic portfolio “tilts,” and alternative investments.
Warwick is co-chief investment officer of Aspen Partners, LTD, an alternative investments specialist based in Atlanta, Denver, and New York, and CIO of Quantitative Equity Strategies, LLC. He is the author of several books, including Searching for Alpha: The Quest for Exceptional Investment Performance, (Wiley, 2000); The Handbook of Managed Futures, with Carl Peters, (McGraw-Hill, 1996); and The Worldly Investor Guide to Beating the Market: Beat the Pros at Their Own Game, (Wiley, 2001). He can be reached at bwarwick@aspenpartners.com.
