More than two years after the crash of 2008, advisors are still grappling with the fallout and are seeking new solutions to manage volatility. With a 50% drop in the S&P, followed by the flash crash of 2010, the fear index spiked to new heights. In a Jefferson National survey from last year, a clear majority of advisors-roughly two-to-one-said tactical management is the right approach for this tough market. Of nearly 1,000 respondents, 68% of the advisors surveyed felt pressure to revise their asset management strategies, 66% said clients were more confident in a tactical strategy, and 63% were more likely to employ a tactical strategy.
The basic building blocks of good investing won't change: establish a goal, create a plan, follow a disciplined approach and don't overreact. But in today's volatile market, more advisors are moving to the disciplined use of a tactical-asset management strategy, instead of relying strictly on traditional buy-and-hold.
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