Four questions for investors who plan to fire their adviser and go DIY. Plus, how Biden’s woes are reshaping the market outlookAmid all the negativity about the economy lately, global stock markets have had a nice run in the past 18 months.
These numbers reflect today’s bull market conditions. Sure, there are advisory clients who are unhappy with the fees paid or services rendered. But it’s hard to accept the idea that almost one in three advised clients are so fed up, they want to go DIY as opposed to finding another adviser. Recently, stocks have been great. The 12-month S&P 500 total return to June 30 was 23 per cent, while the S&P/TSX composite made 12 per cent and the MSCI EAFE index made 17 per cent. The cliche is true - a rising tide lifts all boats.-Am I doing it to chase performance? If so, be aware that there are downside risks to stocks if the economy slows or falls into recession. Today’s hot picks could lead the next market downturn.
-Do I fully understand my portfolio? Your adviser may have built a portfolio that tempers volatility by avoiding both the highest highs and lowest lows for the market.