You Know Who’s Terrible in a Crisis? A Robot.

Posted by Jon Robinson on 2/15/22 12:23 PM

Call me a luddite if you like, but few things annoy me as much as when I navigate to a new webpage and that, “How can I help you?” box pops up on the lower right. That chatbot entering uninvited always sends me on a frantic search for how to make it disappear as quickly as possible.

Those bots have fully infiltrated the online world: banks, municipal governments, dental offices, nonprofits. Even a robot for my neighborhood grocery store recently wanted to talk to me when I simply needed to verify the hours!

I think about this scenario as it relates to investors. With so much money moved into robo-advisors, what is the experience going to look like when REAL people have REAL questions? “How did the S&P close yesterday?” is easy for a robot. But what answer is going to pop up when the question is, “The market is collapsing! What should I do?” or, “How do I reduce risk in the midst of this volatility?”

More to the point of this blog: How different would the answer be if it were coming from a trusted financial advisor?

Read More

Topics: Advisor Practice Management

Is Planning Alpha Greater than Investment Alpha?

Posted by Jon Robinson on 2/3/22 9:27 AM

How does that saying go? Something about how the more things change, the more they stay the same?

Within financial advisory practices, this sentiment rings abundantly true in the area of portfolio construction/management.

So much has changed in the past few years. For one, the pandemic altered how investors interact with their advisors. Potentially more importantly, due to the prolonged bull market and relative outperformance of passive strategies, advisors have increasingly focused their attention on generating alpha from tax and financial planning.

And yet, nothing has changed at all: this same up-up-up trajectory in stocks shields many advisors from having to face the critical decision on whether to outsource the investment function of their business.

Read More

Topics: Advisor Practice Management

The Investing Equivalent of Parachute Pants

Posted by Mike Carlone on 1/20/22 12:43 PM

If you search deep in the nooks and crannies of your memory, you probably can recall one specific fashion choice you made in your younger days that you now look back on with absolute shame. You may have destroyed the pictures – I know I did, and thank goodness this was before the digital age! – but the memory is still there. Whether it be of a mullet, popped collars, parachutes pants, dramatic shoulder pads, or a rat tail, it’s in there, suppressed and collecting dust.

We made these choices because we thought it made us look cool, all our friends were doing it, or out of rebellion. We probably had friends or family members try to talk us out of it, or at least help us find a new path eventually.

Similarly, now more than ever, investors need financial advisors who can talk them out of the investing equivalent of baggy parachute pants.

Read More

Topics: Behavioral Finance

Market Predictions Are (Still) Trash

Posted by Mike Carlone on 1/5/22 5:10 PM

Since Blueprint is an asset manager, financial services dogma says that right now I’m supposed to tell you where the S&P will close in 2022, which asset class will be the top performer, and where Treasuries are headed.

Instead, for two good reasons I’m going to highlight some laughable predictions made by market “experts” over the years. Reason 1: We could all use a little levity right about now. Reason 2: More importantly, these predictions reinforce the truly important point that most market predictions are worthless.

Read More

Topics: Behavioral Finance

Who Needs A Financial Advisor When Markets Only Go Up?

Posted by Mike Carlone on 12/15/21 11:02 AM

Like many others, I’m drawn to “comeback” stories. It’s no surprise, then, that the history of the world’s rarest and most ancient dog has stuck with me.

For more than 50 years, the New Guinea highland wild dog was thought to be extinct. But in the 2010s, a few reported sightings led researchers to take blood samples that confirmed the existence of a healthy, viable population hidden in a remote region.

You might be wondering how this story can possibly relate to the question posed in the title of this blog. Well, for me, it’s that the past 10+ years have led too many investors to devalue the role of a financial advisor by turning advising into an à la carte menu. Many still value financial planning, but they’re second guessing whether they need an investment quarterback. However, at Blueprint, we see signs of revival.

Read More

Topics: Advisor Practice Management

email signup

New call-to-action

Popular Posts