Note: This article is courtesy of Iris.xyz
By Tom Dorsey, Co-founder, Dorsey, Wright & Associates, a Nasdaq Company
Your business is changing—fast. Robo advisors are offering to do your job for free (or close to it). Regulatory changes are eating up your time and your resources. And as your client base gets younger, “business as usual” simply isn’t winning business any more.
So what can you do to change course?
The key is taking a close look at the mound and making the right changes at the right time to begin to deliver a level of performance your clients no longer simply wish for, but demand.
I know. I know. Your clients are risk-averse—especially the ones with the greatest assets. But while the oldest set may stay put with steady but less-than-stellar performance from their portfolios, younger clients who will drive your business in a decade won’t.
The good news: there’s a simple way to enhance performance without increasing risk. It has nothing to do with timing the market, and everything to do with leveraging the basic laws of physics—and baseball—to deliver a level of performance that helps you provide greater value to your clients and earn your keep—even when facing a robo-competitor that promises to rebalance and reallocate on a dime at little or no cost.
We’ve all seen pitchers getting swapped out of a great game of baseball. Your home-team pitcher opened with a strong arm, struck out a stream of hitters, and allowed only a single run. Sure, he walked a guy…or two, but it’s the top of the fourth and he looks like he’s still doing great. So you’re surprised to see the coach walk to the mound, say a few words and, for no obvious reason, send the winning pitcher to the dugout as a replacement heads in from the bullpen. But why the change, you wonder? Everything seemed to be going great.
Click here to read the full story on Iris.xyz.
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