Reshuffle clients’ portfolios to cut chances of capital erosion
The Systemic Risk Council, a private sector group co-formed by the CFA Institute and led by former Federal Deposit Insurance Corp. chair Sheila Bair, will convene this month to monitor and encourage regulatory reform of U.S. capital markets focused on systemic risk.
Advisors are stressed, clients are anxious, and the market continues to yo-yo. But Martin Cobb, lead manager of the Templeton Global Smaller Companies Fund, isn’t worried.
People who lose $1,000 feel bad. People who find $1,000 feel good. But the person who finds $1,000 doesn’t feel as good as the person who loses $1,000 feels bad. In fact, the loser weighs on the issue twice as heavily as the gainer. That’s loss aversion.
People with higher testosterone levels are more likely to take risks in investments and careers.
Amidst roiling equity markets, many have said the days of the equity risk premium are over; however, according to Roger Ibbotson, it’s not only alive and well, but there are also new risk premia that investors must consider to capture opportunities in today’s markets.
Use these five strategies to help clients get comfortable with calculated risks.
New findings in the burgeoning field of Neuroeconomics confirm emotions play a huge role in how people invest. Advisors look for extreme highs and lows in clients’ lives, studies suggest more subtle everyday emotions can also impact investment decisions.
What does the “new world order” mean for individual investors? Colin Ripsman, vice-president with Phillips, Hager & North, delved into that question at the firm’s pension trustee education seminar last week in Toronto.
Foundations, pensions and wealthy investors now accounting for non-traditional risks.