While president-elect Donald Trump’s stance against the Department of Labor’s fiduciary rule may change the game for US financial advisors, their current focus is to guide their clients through post-election volatility, according to an article on Financial Advisor IQ
One example cited was CooksonPeirce Wealth Management advisor and portfolio manager Cory Krebs, who according to the piece said soothing emotional clients should be “job one” for most advisors. “[T]his was such a polarizing election that we’re probably going to wind up spending a lot of time simply soothing the fears of half our client base,” said Krebs, who was relieved to see a relatively flat open from the financial markets after the previous day’s extreme tumbles.
“Despite its divisive nature, this election isn’t shaping up to be a real game changer,” he said, adding that he is alerting investors to some stock sectors – including biotech and pharmaceuticals – that might be “at play” upon Trump’s occupation of the oval office.
Sage Financial Group Cofounder Alan Cohn, meanwhile, said he expects to concentrate on helping clients deal with heightened market volatility, which he expects to remain “above normal” at least into early 2017. “So my role as an advisor is going to be part psychological counselor and part tactical investment manager,” he said.
Aside from reassuring clients via individual calls, face-to-face meetings, and a lengthy Wednesday morning email alert, Cohn said that the stock market has on average performed very well when Congress and the sitting president are from the same party.
Peter Mallouk, President of wealth management firm Creative Planning, said is expecting the president-elect to lead a pushback against the new fiduciary rule set to kick in next April. Until then, he said, he’s advising his clients that sectors like energy and financial services may benefit under Trump, as well as advocating for patience and common sense.
“As long as Trump can remain a stable and positive force for change, investors should be fine over the longer run,” he said.
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