You probably don't need to be told. You see them everyday; new clients who come looking for objective advice. Managing expectations, keeping clients calm … and, oh yes, generating returns are all difficult enough. But if you're a wirehouse rep, add headline risk to the mix, the effects of which now have numbers attached. From the Wall Street Journal:
"Last year, registered investment advisers brought in more than $108 billion of net new assets into the three largest custodians, according to Charles Schwab Corp., which holds roughly $500 billion in assets for such advisers. By contrast, the four major Wall Street brokerage firms saw an outflow of $8 billion in 2008. Investors seeking to repair their damaged nest eggs say the chief lure of independent advisors is more-objective guidance." [Emphasis ours.]
