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.

Matt Price
During the second half of 2021, we worked diligently to prepare our clients for a stock market pullback. Why? Because history never repeats itself, it often rhymes. We wrote weekly blogs, hosted educational webinars, and had countless phone calls and meetings to set expectations for the next downturn in the market. Because of this, the recent stock market correction has been handled well by most of our clients.

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.”

Do you have a news tip you’d like to share with FA-IQ? Email us at editorial@financialadvisoriq.com.