• Research and data-driven behavioral insights to guide client conversations

  • Practical application of behavioral finance to portfolio construction, management and analysis

  • Ideas, guides and materials designed to differentiate and grow your practice

  • Current market conditions from the Behavioral, Economic, Valuation, and Technical perspectives

Behavioral Advisor Perspectives and Practices for Uncharted Waters

These are uncertain times. We work with great advisors that have shared their observations and resources with us and we thought you might find some of this helpful.

This Time is Actually Different

  1. We have not seen a global health crisis with such broad impact.
  2. We have not seen a market decline this rapid and severe.
  3. The ultimate outcome of events is still largely unknown.

Focusing on What You Can Control

  1. Discussions with clients can lead to better outcomes when redirected back to established long-term plans. Some specific topics include:Does the client have immediate financial needs over the next 30 – 90 days that aren’t currently being met? If so, do only what is necessary to satisfy those needs and no more. 
  2. In heightened market volatility, large changes to asset allocation in excess of 20% should be avoided. This precludes selling all or most of a stock portfolio after it has declined significantly in value. This also precludes trying to “call the bottom” and wholesale getting into the market from cash.
  3. Asset allocation decisions should be made in context of the client’s long-term plan and not in response to equity prices.

What We Believe

Humanity has overcome world wars, famines, pandemics, inflation, policy errors, and financial market crises. We have every confidence we will get through this too.
 
A perspective of hope and optimism serves us better than one of fear.

Additional Resources

  • 7 Ways to Stay Positive Even During the Toughest Times
  • 7 Ways to Support Others During Tough Times
  • Richards, Crosby, Others Discuss How to Calm Clients in the Time of Coronavirus
 

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Behavioral Viewpoints features new topics each month which are intended to help advisors and investors gain a deeper understanding of how behavior shapes the investing landscape.

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IMPORTANT INFORMATION AND DISCLOSURES

The information provided here is for general informational purposes only and should not be considered an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. It should not be assumed that recommendations of AthenaInvest made herein or in the future will be profitable or will equal the past performance records of any AthenaInvest investment strategy or product. There can be no assurance that future recommendations will achieve comparable results. The author’s opinions may change, without notice, in reaction to shifting economic, market, business, and other conditions. AthenaInvest disclaims any responsibility to update such views. These views may not be relied upon as investment advice or as an indication of trading intent on behalf of AthenaInvest.

You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives and financial circumstances. You should consult with a qualified financial adviser, legal or tax professional regarding your specific situation. Investments involve risk and unless otherwise stated, are not guaranteed. Past Performance is no guarantee of future results.

 

Contact

AthenaInvest Advisors LLC
5340 South Quebec Street, Suite 365-N
Greenwood Village, CO 80111

Phone:   (877) 430-5675
Fax:        (303) 721-6294
Email:     support@athenainvest.com