David Adler

The surprisingly weak U.S. jobs report in March showed that the U.S. has not fully turned the corner on job growth. Non-farm payrolls rose by 120,000, the worst performance in more than a year. This slow recovery is not unexpected after a financial crisis, and there are many other bright spots in the economy. However, some argue that the unemployment numbers are actually worse than reported—an ongoing controversy not likely to be resolved in the near future.

Where does an advisor add the greatest value? Through knowledge of investing and financial markets? Through the ability to help clients reach their retirement savings goals? By bringing order and a roadmap for the future to otherwise unplanned chaos? Professional financial advice is useful in these and countless other ways, but the greatest contribution, at least for some clients, is actually “behavioral”—advisors protecting clients from their own worst instincts and bring rationality to the planning process.

“Is today's pain at the pump tomorrow's barrier to recovery?” asks J.P. Morgan Funds’ Market Strategist Andrew Goldberg. There is a precise quantitative relationship between changes in energy prices and economic growth, with high oil prices impacting GDP. The longer answer to the question is at this moment still uncertain. There are good arguments on both sides regarding the future direction of the price of oil, and hence the duration of pain at the pump and how it could affect the strength of continuing recovery of the US economy.

“Does Europe need some ‘austerity austerity?’” observes J.P. Morgan Funds’ Market Strategist Andrew Goldberg. Goldberg’s question is economic but also political. The EU often seems focused on added austerity as the best route out of its continuing sovereign debt crisis, but this itself is a policy decision, and one increasingly contested in struggling peripheral countries.

Rethinking Equities and Retirement IncomeThe asset allocation rule of thumb in financial planning holds that an individual’s portfolio should be allocated to equities according to the formula “100 minus his or her age.” For a retiring 65 year old, this would mean a 35% equity allocation. The logic behind the rule is simple: as people get older, they should dial down…