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Risk Tolerance and Behavioral Finance
Wealth Management
We have seen a powerful recovery in asset prices in the wake of the global financial crisis (GFC). We cannot forget, however, that more than $15 trillion in asset values evaporated in 2008–2009, wiping out gains earned in the bull markets of the 1990s and early 2000s. During the GFC, clients were horrified and did not know what to do.
Advisors Leveraging New Programs to Launch ETFs
Wealth Management
There has been a meteoric rise in the popularity of ETFs in recent years. From an investor’s viewpoint, an exchange-traded fund offers several advantages over traditional open-end mutual funds, with the primary benefit being the ability to buy and sell during the trading day and not being limited to end of day pricing. ETFs also have a reputation for low
Positive Developments for Hedge Funds
Wealth Management
Sentiment toward hedge funds has been negative in recent years, in large part because industry returns were poor in 2015 and the first half of 2016. Also, CalPERS and other institutions left the asset class, amid a wider debate about active management in general, and hedge funds’ fees, in particular. While some of the criticism was justified, we think it’s
How to Prepare Your Bonds for an Equity Correction
Wealth Management
Preparing for a stock market correction? We’ve got another thing to add to your to-do list: take a look at your fixed-income holdings, too. Nobody knows for sure if an equity correction is imminent. But it has been nearly a decade since US stocks last posted negative returns. Since nothing goes up forever, and since corrections are historically common in
Retirement Savings: Why Hedging Inflation Is Important
Wealth Management
Inflation has been calm for so long that many retirement investors have overlooked its potentially corrosive effects. But for defined contribution (DC) plan portfolios designed to last decades, we believe inflation remains one of the greatest potential risks, making inflation-hedging assets critical. In fact, the vast majority of respondents to the 2017 PIMCO DC Consulting Support and Trends Survey supported
Greed is Good? Wealth Manager Asks Trump to Pardon Michael Milken
Wealth Management
Michael Milken has spent many years now working as a philanthropist, but for better or worse he will probably never shake his reputation among many people as a poster child of Wall Street excess during the 1980s, which culminated with Milken serving 22 months in prison after pleading guilty to securities fraud in 1990. Famously dubbed the "Junk Bond King" during his time
Graham & Dodd vs. Edwards & Magee
Wealth Management
The development of a personal trading or investing philosophy is usually an evolutionary and highly personal process. Through a combination of experience, trial-and-error, and the attainment of knowledge, successful market participants hone their skills until they find a strategy that works for them and that is consistent with their general mindset. Despite the individualized journey, though, battle lines are generally
Advisor Software Launches Behavioral IQ, First-Of-Its Kind Behavioral Finance Risk Assessment Solution
Behavioral IQ enables advisors to truly understand their clients’ personalities and risk tolerance to make more intelligent investment selections WALNUT CREEK, Calif. – June 27, 2017 – Advisor Software, Inc., a leader in wealth management cloud solutions, today announced the immediate availability of Behavioral IQ, a first-of-its-kind comprehensive behavioral finance profiling solution that calculates deep behavioral characteristics influencing risk and
Advisors Find a Road Less Traveled in Fixed Income
Wealth Management
Experienced investors know they can’t control what the market is going to offer. While it’s not unusual to find an asset manager targeting a specific return, actually achieving that goal is sometimes as much a matter of luck as skill. The simple fact is that no one, not the best stock picker or bond buyer in the world, can accurately
The Philanthropy World is Embracing Impact Investing
Wealth Management
In 2015, the United Nations set out of list of Sustainable Development Goals to track global progress against massive social and environmental challenges like extreme poverty, inequality, and climate change. But doing hitting those goals will take more than creative public and private partnerships: it will cost money. All told, the estimate is in the trillions, which neither governments nor