As registered investment advisors and fee-based advisers are challenged by increasing market volatility and declines, they are turning to alternative investment classes and tactical allocation to protect their clients’ portfolios. This was the major finding of a survey of 500 professionals by Jefferson National.
Roughly 50% said they have increased their use of alternatives, and 76% believe tactical asset allocation can outperform a passive approach over the long term.
“In recent weeks, we’ve seen the Dow and the S&P drop more than 10% off this year’s peaks,” said Laurence Greenberg, president of Jefferson National. “Advisers are preparing for the reality of ongoing volatility. While the fundamentals of good investing won’t change—establish a goal, create a plan, follow a disciplined approach and don’t overreact—our survey indicates that in today’s turbulent market, advisers are employing alternative assets to provide advantages, such as increased diversification, and they are more confident in the disciplined use of tactical asset management rather than relying only on traditional buy-and-hold.”
