The role of investment outperformance as a differentiator between advisors is rapidly diminishing. Now more than ever, client relationships set the foundation for a successful and lasting practice. Industry-wide research confirms this shift. For example, a 2014 Spectrem Group-Vanguard study found that affluent investors gave more weight to communication, trustworthiness and transparency than to fees […]
Advisors can teach clients that what seems counterintuitive -- buying when the market is down, or selling when it is up to return the portfolio to the desired asset allocation -- is actually in their best interests.
Our U.S. research underscores the difficulty of forecasting returns, risks, correlations and cross-correlations for asset classes, sub-asset classes and investment strategies, especially in the short term.
Some investors are beginning to wonder: Is indexing getting too big?
The advantages hinge on hedging.
Evaluating alternative indexes with an active lens
There’s no such thing as a perfect hedge.
No formula should be applied without accounting for significant events
ETFs make it easier for advisors to investigate frontier markets for untapped market exposures. But our research suggests such markets may convey more risks than benefits.
Investors are unduly influenced by short-term market swings.