Investment advisers often point to months such as this past March to explain the value they offer in comparison to DIY investing.
In a crashing stock market, an adviser can be a voice of reason and rationality. Someone to hear out panicked investors and then explain why they shouldn’t act on their emotions with impulsive portfolio changes. Unfortunately, quite a lot of investors never got this type of service from their advisers in the market plunge.
A poll commissioned by the Ontario Securities Commission documents the problem. Close to 2,000 people were asked between March 30 and April 11 about the anxiety they felt about their investments, and 47 per cent said they were more stressed.
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How did advisers tackle this wall of worry? Almost three-quarters of poll participants with an adviser did have some form of communication from this individual or his or her firm. The flip side here is that close to 25 per cent did not hear from their adviser during the worst market plunge since the global financial crisis.
A total of 46 per cent of poll participants with an adviser actually had discussions with this person. But another 17 per cent received “informative messages” and 11 per cent received some other type of communication.
Message to the one in four investors who never heard from their adviser: This individual does not care about your account. You probably know that already. Now for the 28 per cent who got an e-mail or other form of impersonal communication: Your adviser doesn’t care about your account, either. Adding your name to an e-mail distribution list is worth about $1 of the total fees you’ll pay this year.
The real deal in advice is personal contact. Not just in the introductory client-adviser phase, when you’re handing over money to invest, but regularly through the years and most certainly during stock-market crashes. Close to half of advisers contacted their clients in April; kudos to them for a demonstration of one of the core reasons to have an adviser.
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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
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