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Advisor Perspectives
Insights into the world of high- and ultra-high net worth investing
May 12, 2009- Vol 3, Issue 19
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If you've read a headline foretelling the next shoe to drop or domino to
fall lately, it was probably about commercial
real estate. We speak with two experts on this market and analyze the data to uncover
the truth about whether investors should brace themselves for a collapse in
commercial real estate.
Sustainability is a choice.
A choice to be a society that can continue to live and thrive over time.
Our society has begun to recognize the importance
and urgency of choosing sustainability. Values, attitudes
and behaviors are shifting. Ken Frietas, Principal of Frietas &
Associates and Anders Ferguson, Partner and Chief Strategist of Veris
Wealth Partners - the sustainability investment partner to Envestnet's
Sustainability Platform, outline consumers'
increasing preference for sustainability, business' response to that
preference, and the implications and opportunities of both for investment
advisors. We thank them for their sponsorship.
We are once again privileged to publish the latest version of the HCM Market Letter, edited by Michael
Lewitt. Lewitt's analysis and writing are a cut above
virtually everything else we see, and you will enjoy reading his
latest thoughts. You can also subscribe directly to his newsletter
using the link at the beginning of the article.
Dan Richards analyzes the characteristics
of successful professional athletes and offers several lessons for advisors.
When you watch top-performing athletes and winning sporting teams,
it's tempting to attribute their success entirely to talent. And yes, talent is of course essential, but other less
obvious characteristics matter just as much when it comes to
achieving success.
More articles below...
Dave Loeper, Chairman and CEO
of Financeware, responds to an article in last week's Wall Street Journal on Monte Carlo simulation. Loeper says our industry suffers from a conflict of interest, perpetuated by
this article, which results in scaring
people into needlessly sacrificing their lifestyle, only to die on a death
bed stuffed with money they could have spent.
Some of the most effective advisors are
marketing using blogs, internet radio, video blogs, e-books and Web-casts
to attract clients and gain exposure. Kristen Luke explains how advisors can dip their toes into social media marketing
without too much fuss, and expand marketing already in place.
As we mark our second anniversary,
we take a moment to reflect on some of our
accomplishments over the last year and explain our plans for the future.
Lastly, we highlight submissions to Advisor
Market Commentaries.
We welcome guest submissions from our readers. For more information, here are our guidelines.
If you are experiencing problems opening or navigating through our
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requesting the "text-only" version.
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reply to this email with the word "unsubscribe" in the subject
line.
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Widespread defaults in the commercial lending market would be devastating,
as they were for Lehman Brothers, whose bankruptcy was precipitated by
nearly $30 billion troubled commercial loans. While the current
market is far from safe, however, reports of impending doom are greatly
exaggerated.
A Look Inside the Commercial Real
Estate Market
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Sustainability,
Actually: What Today's Consumer Wants and What It Means for Advisors
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A growing number of consumers are choosing sustainability. And when
two thirds of our economy runs on consumer spending, what the consumer
wants ultimately drives capital investment, operating decisions, and
company returns. The consequences of consumers' shift toward
sustainability are real and significant for business and investment
advisors.
Sustainability, Actually: What
Today's Consumer Wants and What It Means for Advisors
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Michael Lewitt
explains why this a market in which investors are best served by active
management and fundamental research, not by macroeconomic or sector-wide
bets. Those types of broad bets may be profitable in the short-run
but risk sharp reversals in the not-too-distant future as the effects of
cost cutting and debt reduction reverberate through the economy.
The Well-Meaning
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Lessons
from Winning Athletes
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For athletes and for teams to deliver on their potential, talent has to be
backed by a well thought through game plan, discipline in executing that
plan, commitment to preparation and the mental toughness and determination
to win at all costs. That's true of winning athletes - and it's just as
true of winning financial advisors.
Lessons from Winning Athletes
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A
Response to "Odds on Imperfection: Monte Carlo Simulation"
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According to Dave Loeper, unethical product vendors use the "odds of
success" and "failure" to scare investors into maximizing
how much they have in their portfolios (so they can collect more in fees)
at the price of the investor spending as little as possible (sacrificing
their lifestyle). Investors are pushed to take needless portfolio risks
through excessively aggressive portfolio allocations to compensate for
overly conservative assumptions, scary fat tails, or targeting too high a
confidence level.
A Response to "Odds on
Imperfection: Monte Carlo Simulation"
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Social
Media Marketing for the Everyday Advisor
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Rarely does a prospective client choose an advisor after one
interaction. Kristen Luke explains how social marketing can entice
your prospects to visit your content over and over again. Eventually,
you will be regarded as a trusted subject matter expert.
Social Media Marketing for the
Everyday Advisor
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Advisor
Perspectives: Our Two-Year Anniversary
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It's been two years since we published our first newsletter, and we reflect
on some of our accomplishments and discuss our plans and goals for the
future.
Advisor Perspectives: Our Two-Year
Anniversary
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Highlights
from Advisor Market Commentaries
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In her column Sunday in the New York
Times, columnist Gretchen Morgenson commented on the work done
by Chris Whalen at the Institutional Risk Analyst, noting that Whalen
expects bank writeoffs to extend through the end of this year. Here
is the Whalen's discussion of the Q1 2009 results for the banking industry
based on the CALL reports filed with the FDIC.
Read the commentary
Knightsbridge Asset Management says there are many reasons to become less
defensive but the market has come up so fast - the fastest since 1938 -
that a period of digestion is in order. They are hopeful that less severe
economic times will allow for the return of "a nation of laws and not
men", and that the current populist stridency abates. They also have
some pointed remarks regarding the government's treatment of the
automakers' bondholders.
Read the commentary
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Advisor
Perspectives
Box 380
Lexington, MA 02420
(781) 376-0050
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