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Advisors Capitulate in the Face of Rising Markets
By Advisor Perspectives
In 1999, after one of the biggest bull markets of the century, advisors seemingly abandoned caution. Despite their stratospheric valuations, assets flowed into growth and technology stocks and out of risk-managed and value funds. Investors who earned only 20% likely complained wildly to their advisors that they had only captured a fraction of the Nasdaq Composite return which gained over 85% that year.
Again, in 2007 and early 2008, our firm witnessed more transfers from risk managed portfolios into always invested equities than we had ever seen before, even as markets had already begun to roll-over.
Read more at Advisor Perspectives.
Photo: Iohit V