Last week’s top conversations were started by APViewpoint thought leaders Robert Huebscher and Michael Kitces, and investment industry veteran Beverly Flaxington. They generated thoughtful discussions on: Jeffrey Gundlach’s bond market warning; how to define the “best” retirement income strategy; and six keys to becoming a high-impact communicator.
Robert Huebscher’s Gundlach’s Bond Market Outlook (and a Warning for Junk Bonds) inspired 13 comments in which advisors agreed that, regardless of Gundlach's strong track record, his belief that the current bond market rally won't continue throughout 2016 should not be weighed heavily. Advisors cited Gundlach’s prediction of a collapse in emerging market prices as an example of a forecast made without a specific timeline, which they contended is a common characteristic of expert forecasts because it allows pundits to avoid accountability. APViewpoint members added that as a pundit Gundlach “is expressing an opinion based on his views that the market is somehow wrong in valuations,” whereas advisors do not make a forecast of returns based on opinions; instead they use a very wide dispersion of potential outcomes.
Michael Kitces’ How Do You Measure Which Retirement Income Strategy is Best? received seven comments about how to measure the effectiveness and appropriateness for a specific client of a retirement plan. APViewpoint members widely agreed that advisors must gain a thorough understanding of client circumstances, such as the liquidity of their investment portfolio, and determine “the tradeoffs that clients must consider in their retirement planning (e.g., in spending versus investing)” to select the most appropriate retirement income strategy. However, they challenged Kitces’ claim that a utility function can be used to measure risk aversion, citing doubts that advisors would be able to “apply a utility function in a mathematical way to obtain a number that measures the effectiveness of a plan.”
APViewpoint hosted another successful webinar on April 28 titled Six Keys to Becoming a HighImpact Communicator. The webinar, presented by The Human Behavior Coach® Beverly Flaxington, reviewed strategies to help financial professionals grab their listeners’ attention and convey useful information to them with maximum impact. Bev recommended that advisors create context by tailoring their message to fit the needs of their audience, and that advisors improve trust by “reading” their listener’s behavior and adapting their communication style accordingly. Bev answered questions about her presentation in this follow-up conversation, and a replay of the webinar can be viewed here.
Marianne Brunet is a financial markets analyst with Advisor Perspective
