Bruce Love, Managing Editor, FA-IQ
“This is Bruce Love at the FT 400 Advisors Celebration and we’re having a conversation about advising clients in this new political and economic era.
“Krishna, now that we have a new president and we’ve seen him in action, what should advisors be telling their clients about the economy over the next 18 months?”
Krishna Memani, CIO, OppenheimerFunds
"So, until Mr. Trump was elected president, the world was all about deflation or disinflation. Growth was okay, but we were still dealing with those issues. With the election of Mr. Trump, there is a chance, there is a possibility that the outlook for inflation, and outlook for growth changes measurably. And that’s what we’ll be dealing with over the next 18 to 24 months.”
"AJ, how are you discussing these issues with clients?”
Anupam Johri, Executive Director, Wealth Advisor, Morgan Stanley Wealth Management
"Bruce, I’ve been an advisor for 24 years, so a few things that I’ve always told clients that, irrespective of the times, you have to invest the money based upon the goals and the needs of the clients and diversification plays a big part in the investing process. And then investing is a marathon, it’s not a sprint.
“So, those things stay there always in my conversation with my clients, but regarding the recent election, as Krishna had pointed out, I think that the direction of the market is correct. We might have gone too fast, too soon, but overall with the deregulation and the tax reforms and a big infrastructure spending bill, I think that that points to a higher growth rate of this economy and the economy would do well over the next 18 to 24 months. So I’m optimistic about the economy in general.”
"Rocco, what are you telling clients?”
Rocco Papandrea, Senior Vice President-Wealth Management, Merrill Lynch
"Both as AJ and Krishna has mentioned, taking a goals-based approach and finding out what’s most important to our clients and ensuring that their portfolios are aligned to help them meet those specific goals. As there’s changes in the market, we need to make sure that we also make those subtle changes. Now that we’re probably going to be in a rising interest rate environment, clients reviewing how their bond portfolios are structured, also looking at the cyclicality of some of the equities, versus more of the traditional, more conservative stocks, that bent as well is also something we have to take into account as we look at a higher growth rate with the economy expanding.”
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