Recent market volatility has once again brought financial advisors into the spotlight. With stocks plummeting and the CBOE Volatility Index—often referred to as the “fear index”—surging past 65, it’s no surprise that advisors are seeing a spike in client inquiries. The sudden downdraft in stocks is forcing wealth managers to calm anxious clients and provide reassurance during these turbulent times. In a recent InvestmentNews article, Rob Branch shared his perspective on managing these challenges, offering insights alongside other leading professionals in the field.
Considering the current market dislocation, financial advisors are employing various strategies to navigate the volatility.
Rob Branch, ChFC®, CFP® (Chartered Financial Consultant) and (CERTIFIED FINANCIAL PLANNER®) at 20/20 Financial Advisors, A Prime Capital Financial Company, recommends for some people to take advantage of this situation. He is using the market’s dislocation to make a few moves; in his case, locking in interest rates on structured notes at levels far above recent yields in the 2- to 3-year duration space.
“We are able to rotate some of the higher cash and short-term bond levels that we have in their allocations due to the yield curve dynamics these past couple of years into tactical equity positions at better entry point and lower risk,” said Branch. “These are lemons into lemonade kind of days.”
Click here to read the full article and gain more insights from Rob and other advisors!
If you have any questions about navigating a turbulent market and how you can plan to protect your family or business, we can help! Contact us at 2020 Financial Advisors today and explore your options!
