Monthly Archives - February 2018

Advice to the Advisors

Sheaff Brock Institutional Group | Financial Advisors | Investment Panic | Market Volatility

There are 3 Classes of Investors—Behavioral Science can Help Advisors Deal with the Other 2

Mitigating panic seems to have become, these days, part of your job description as a financial advisor. Dr. Stephen Wendel, head of behavioral science at Morningstar, advises using a behavioral approach. Not only can dialing down the panic meter help you cope, Wendel suggests, but it is likely to improve investor outcomes. Wendel describes investors in simple terms: There are those wealthy enough to meet all their financial goals with cash, and then there’s everybody else. Members of the first [...]

Advice to the Advisors

Sheaff Brock Institutional Group | Active vs Passive Investment Strategy | Core and Satellite appraoch

The Core & Satellite Approach to the Market of Stocks

When it comes to advising investors, RIAs must don teachers’ caps. Clients have become comfortable (perhaps in their do-it-yourself years before meeting you) with either a largely passive (index fund) approach to investing or, at the opposite extreme, have become used to populating their portfolios with individual stock picks. Going forward, those clients now look to you for insight. Few discussions have the potential for you to offer them true guidance more than the passive vs. active “debate.” Active [...]