FA-IQ reached out to advisors to ask: What are your clients’ top concerns?
Matt Price, partner, senior vice president and wealth manager at The Price Group. Houston-based Price has been in the industry for 11 years and has $670 million in client assets.
“Humans are linear thinkers. For example, if it has not rained in the past two weeks, we can start to believe that it will never rain again. Stocks went straight up from April 2020 through December 2021, and a lot of investors started to believe that stocks would never move lower again.
Clients seem to be most concerned about rising interest rates and inflation. Why? Because we have not lived through a rising interest rate environment since the early '80s and many retirees don’t remember this time period. As it pertains to our clients' fixed-income portfolios, we are advising clients to be more interest rate agnostic with the fixed income portfolio. This means that we are taking less interest rate risk — falling prices if interest rates move higher — and taking more credit risk. This has proven to work well in 2021 and thus far in 2022.”
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