Financial Advisor: Advisors Stay the Course Amid Monday's Market Drop
Financial Advisor features Jefferson National’s CEO Mitch Caplan in an article written by Chris Robbins. Robbins reaches out to Caplan to gain expert insight on RIAs and fee-based advisors as they faced a four digit drop in the Dow.
Mitch started by noting that the downturn in U.S. markets is more likely a symptom of globalization, not a sign of weakness at home, and exacerbated by “a world where the media is real time, seven days a week.” In response, advisors’ first task is to explain the downturn to clients. “What we’ve heard pretty consistently is that they felt confident in their ability to communicate with a client.”
He also noted that our advisors are confident in their preparation, “correctly positioned” and “reaffirming to clients the need to stay the course.” He added that many of our advisors see this latest downturn as a buying opportunity and were increasing “cash positions like money markets over the past several weeks.”
“Most interesting was that advisors felt like this was their time to shine and prove the value that they bring to their clients,” Mitch said. Investors who are completely self-direct or use robo-advisory services with no human component could have suffered from a lack of guidance during Monday’s sell-off. “If you are using a robo-advisor, you probably didn’t get a message from them saying not to panic this morning.” Mitch concluded, “I’m a big believer in technology, but you can’t replace human capital.”
Read the full article here.