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1. Warning Signs A Correction Is Ahead
It is essential to clarify we are discussing only the potential for a short-term correction. As is often the case, some tend to extrapolate such to mean I am saying a “crash” is coming, and you should be all in cash. Such an extreme move is ill-advised without a significant weight of evidence. However, there is reason to be cautious in the near term. — Lance Roberts
2. Advisors: How Do You Answer “What Do You Do?”
There’s light at the end of the tunnel. States are removing lockdown restrictions. Live events are coming back. You will decide if and when you are comfortable mixing and mingling. Before long, you will attend an event and someone will ask: “What do you do?” What’s your answer? — Bryce Sanders
3. The Dire Outlook for Bonds in the Wake of COVID-19
Our outlook for bonds has moved from bleak to dire. Over the coming decade or two, bonds are unlikely to fulfill their dual role of income and capital preservation. Bond investors will be forced to choose between income or capital preservation, and there is a good chance they could end up with neither. — Marc Ado
4. Millennials Are Skeptical of Financial Advisors
The Millennial generation makes up more than a quarter of the U.S. population according to the U.S. census, and they are inheriting and accumulating wealth, which makes them an ideal prospect for many financial professionals. Financial providers with a focus on Millennials need to be aware of how Millennials perceive financial professionals, so Spectrem Group recently conducted research to gain insights into how Millennials perceive financial advisors, the types of advisors they have chosen to work with, as well as why some Millennials are not currently working with an advisor. — Catherine McBreen
5. With Great Power Comes Great Wealth
We now have Citi Group run by Jane Fraser and Stephanie Cohen a likely successor to David Solomon at Goldman Sachs; we have Alison Rose running NatWest and Ana Botin at Santander Group; and we mustn’t forget Christine Lagarde at the ECB and the many other powerful women of the world. The trend is notable. The trend is that world leaders, prime ministers, CEOs, bank and investment focused people, are becoming more and more oriented towards Mother Earth and female virtues, driven by wealth to do good for society and the planet. That world is very different. — Chris Skinner
6. Qualifying: Before or After Your Presentation?
If you want to immediately improve your conversion rates, then make sure you understand—in advance—what your prospect’s buying motives (and potential objections) are. — Mike Brooks
7. Computer Vision Is Like Investing in the Internet in the ‘90s
Think of Computer Vision like the Internet Both are essentially platforms that innovators use to build world-changing disruptions. The thing is, it takes years to figure out how to use these transformational inventions. The internet was first created in the 1970s. But tech geniuses didn’t build the tools that disrupted the world until the ‘90s. The big breakthrough in computer vision happened in 2012. But tech companies are just now starting to harness it. — Stephen McBride
8. Prospect Objections Are a Cry for Help
As a financial advisor, you are valued for your expert knowledge, but you are only as effective as your ability to get your prospects and clients to act on your recommendations. If you can’t, their situations won’t improve, and neither will yours. Many financial advisors in that situation might chalk it up to them being “bad” prospects and move on, but aren’t they abdicating their role as an advisor? — Don Connelly
9. Making Alternative Investments as Easy to Own as Mutual Funds with Mat Dellorso
Mat Dellorso is the Co-Founder of WealthForge, a fintech company that provides technology solutions developed by regulatory experts to streamline investments into alternative securities. Their Altigo platform enables marketplace connections and facilitates alternative investment transactions between advisors and sponsors. — Power Your Advice
10. Inflation Is a Boon for Value Equities
Generally, when inflations expectations are rising, we see value stocks favored more than growth stocks. This is due to value stocks being seen as a “short-duration” asset. The reasoning has to do with investors using price multiples, such as price/EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), to categorize equities into either growth or value. An equity with a lower price multiple will return an investor’s capital sooner. In an inflationary environment, a dollar today is worth more than a dollar tomorrow, so the market puts a premium on securities that are considered to have a “short duration.” In contrast, the price of growth stocks is derived from future profits which become more discounted as inflation picks up, lowering their price. — Chris Vandiver
11. Stop Sharing Content, Start Delivering Value
We all can share content on social media, that’s easy. But showing your true value, putting yourself out there and doing webinars for clients and prospects creates tremendous activity, confidence, and initiative. I am encouraging you as a financial professional, be unique, be creative and consider webinars and other ideas to show your value. — Grant Hicks