Unconventional times call for unconventionable wisdom

Advisers find themselves in unusual situations in this roller coaster financial market, and some are offering advice — which might contradict conventional wisdom.
NOV 30, 2008
By  Bloomberg
Advisers find themselves in unusual situations in this roller coaster financial market, and some are offering advice — which might contradict conventional wisdom. For the first time, Dorann Cafaro, founder of Cafaro Greenleaf of Little Silver, N.J., has advised clients not to read their quarterly investment or 401(k) statements when they arrive in the mail. Joseph Masterson, a senior vice president at Purchase, N.Y.-based Diversified Investment Advisors Inc., takes that advice a step further. He said some clients are so stressed out that they should throw out the statements. "I think people would be better off not opening third-quarter statements and throwing them out," Mr. Masterson said. He worries that if people open their statements, they might begin to panic. "If you were close to retirement and had $1 million and you've lost 30%, you're not longer a millionaire," Mr. Masterson said. In some cases, the grim financial markets have been too much even for financial services professionals to handle. Mark Gutrich, president and chief executive of ePlan Services Inc. of Denver, said his firm used to send out daily e-mails to its staff highlighting the firm's assets and daily changes. As the numbers plunged down, he said, company morale fell, and people couldn't take it anymore. The company stopped sending out the e-mails. Another adviser is using what he calls the "two Ambien" sleep test. Ambien is a prescription drug used to help people sleep. "If they are able to sleep with up to two Ambiens or equivalent, I believe they should keep investing," Rick Shapiro, managing member and attorney at Investment and Financial Counselors LLC of West Hartford, Conn., wrote in an e-mail.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.