US investors just as tentative as those in Australia
US investors appear to be exhibiting much the same reluctance as their Australian counterparts to move out of the safety of cash or cash-like investments, according to a Reuters Global Wealth Management Summit.
While a recent Money Management roundtable confirmed the degree to which Australian investors were only tentatively moving out of cash and into equities, the Reuters Global Wealth Management Summit being held this week suggested US investors were still being spooked by events surrounding the Global Financial Crisis.
"There's still a pretty vivid memory of what happened in 2008, 2009, and the impact to people's portfolios," according to the head of Merrill Lynch Wealth Management, John Thiel.
He pointed to the fact that US stocks had taken a roller coaster ride over the past five or so years and that investors scared by volatility often retreated to low-yielding fixed income instruments.
"Investors are behaving like most human beings would with the memory of what can happen and isn't in their favour," Thiel said.
Thiel said that among the biggest hurdles for the industry going forward was helping clients regain their confidence and reorient their focus toward goal-driven wealth management.
"Many of these goals — such as socking enough money away for retirement — cannot be reached by parking money in low-yielding investments," he said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
