Clients are asking a lot of “what if” questions when it comes to stocks. Wayne Badorf and Todd Crawley discuss our equity presentation that helps you answer your client’s concerns.


Todd Crawley: This is the second of two installments that we’re talking about what we’re calling: Thought leadership narratives. This week we’re focusing on equity discussions we believe you should have with your clients called, “Managing for the what ifs.” I’m Todd Crawley.

Wayne Badorf: And I’m Wayne Badorf, and this is The Essential Practice podcast.

Todd: Hopefully those of you that are listening heard part 1 around our fixed-income presentation, “Risks worth worrying about.” But let’s start off with why we believe advisors should be discussing these equity market narratives, as we’re calling them.

Wayne: Well Todd, we’re calling this discussion, “Managing for the what ifs.” And I think about “what if,” followed by so many questions that we’ve heard from financial advisors that they have either posed to us directly or they have heard from their investor clients. What are the best tactical growth opportunities that exist today? Will the bull market last? How can I prepare for, perhaps, an equity market correction? Are equities overvalued? Is there too much risk currently in the equity markets?

Todd: Yeah, exactly. And you know, to take it one layer deeper Wayne, it’s should I be investing in the domestic equity market? Should I have an overweight in the international markets? What is going on with this new thing we have to deal with lately called volatility? And is that something I should be worried about? So, there are a lot of questions on the equity side of the ledger that this thought leadership presentation will, hopefully, address for our financial advisors.

Wayne: Let me add a little bit more. That’s exactly it Todd. I think, as we talked about in our fixed-income presentation that often times advisors and their investor clients are looking to generate income and preserve wealth. We often see the goals are similar but a little different when it comes to equities. That often times preserving wealth may be there, but in many cases the advisor is trying to grow wealth through the use of equities. And so within this presentation we hope to dig into aligning those investor goals along with these questions that we are hearing about the “what ifs.”

Todd: Yes, and to add a little color as to—you talked about where the growth is, so to speak—where should advisors look for growth in the equity markets today. As opposed to, you know, two years ago. And I think these presentations help address that and hopefully spur a conversation you can have with your clients.

Wayne: Yeah, Todd, I think you’re right. When a client walks in the door, it’s not just the statement that walks in the door; it’s a person, right?

Todd: Yeah, that’s a great point.

Wayne: That person has goals, objectives, they also have emotions. And they also have their own thought process of how they’re digesting the information they’re seeing and hearing. Let’s put it all back out on the table. Let’s have this discussion about where we’re at from your goals perspective. Where the financial market’s out; how you can position accordingly; and how should we be going forward.

Todd: Yeah, I couldn’t agree more Wayne. There is an incredible amount of noise out there in the marketplace, and, you know, our job as professionals is to sort of make some sense of all that noise and bring that back to that individual client’s needs, wants, and objectives.

Wayne: Well that’s really the goal of our program. It’s for us to really sit down with financial advisors, and sit on the same side of the table to listen to the concerns or questions that they are hearing from their investor clients, that they are solving for each and every day, and to provide them with resources and talking points to have the valued conversation with their clients to really ascertain where they’re at today, what are their goals and objectives, and hopefully to provide some great dialogue in making sure that they are in alignment with them.

Todd: Well Wayne let’s wrap up this conversation here, but with the promise to go deeper into these thought leadership narratives in episodes to come. But we hope that these last two episodes help explain our effort and the value for advisors and clients.

Wayne: Our regional directors are always a resource when it comes to providing content on both of these topics as we’ve discussed on the equity markets and fixed-income markets. Tap into them for ideas around these narratives.

Todd: Yep.

Wayne: And we’ll remind our audience that there’s more investment insight on our companion podcast, On the Trading Desk®. Until later, I’m Wayne Badorf.

Todd: And I’m Todd Crawley; thanks for listening to The Essential Practice podcast.

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