If you would indulge me, I'd like to break from my normal RIA update and editorialize a bit.
"It was the best of times; it was the worst of times." The opening words from A Tale of Two Cities may in fact aptly describe the recent past in the financial services industry.
It was the worst of times for many large firms that decided to chase returns without serious consideration of the risks. It was the worst of times for those unfortunate advisors who found themselves caught in the middle, having to explain to clients how the actions of their respective employers were a factor in the clients' declining portfolio values. It was also the worst of times for clients who were invested with the large "sweatshop" firms. Those are the companies that continually put pressure on their advisors to bring in more and more business, even as capacity issues caused service to suffer. It was this lack of attention which greatly contributed to the global warming, or should I say, the subsequent melting of clients portfolios. Yes, it was the worst of times.
