Guiding Worried Clients With Behavioral Finance, Crypto Matures Despite Bear Market and the Future of ESG Investing
To My Fellow WSR Community Members:
The collapse of Enron thrust corporate governance into the spotlight across the world of finance from regulators to 401(k) investors reading headlines on the collapse of not only an enormous corporation but also one of the most trusted names in accounting – Arthur Andersen.
Fast forward two decades and corporate governance forms the “G” in ESG – environmental, social and governance principles applied to investments – a movement encompassing investor concerns on a range of issues that transcend the bottom line of the income statement.
Today our Investment Solutions Roundtable Chair assembles a panel of experts to reveal the current state of ESG evolution and share its future path.
We also highlight the recent roller coaster of cryptoassets and – perhaps surprisingly – the maturation of crypto as an asset class in the financial advisor’s toolkit.
In addition, we explore the fascinating subject of behavioral finance – where psychology meets financial decision making – and how we can leverage it for clients to achieve better long-term decisions with a peaceful mindset.
This Week’s Issue
Here’s what we have for you this week:
- In the Upmarket section, Sonya Lutter, PhD, the Director of Institutional Research & Education at advisor training provider Academy, an arm of strategy, management and innovation consultancy Herbers & Company, explains the science of making money decisions – behavioral finance – and teaches us how to apply it when guiding clients through market turbulence.
- WSR Investment Solutions Roundtable Chair Allison Pratt hosts the monthly roundtable in our Investment Solutions & Gatekeepers section, where three experts describe the increasing popularity and growth of ESG: Shannon Larson, Senior Vice President, Platform Management and Product Development at Advisor Group, Dana D’Auria, CFA, Co-Chief Investment Officer of Envestnet and Laura Lutton, Risk Pillar Lead, Director of ESG Product Management, Sustainalytics.
- Have crypto markets reached maturity? In The Digital Domain, we asked Justin Castelli, Chief of Staff at crypto specialist Onramp Invest, what comes next in the crypto market, how to discuss the current bear market with anxious clients and how financial advisors looking into cryptoassets can educate themselves. Mr. Castelli makes the case for treating crypto like other investment classes.
By way of reminder, we’re one month away from the March 15 submissions deadline for the first of our inaugural WSR Growth & Innovation Awards – the Hybrid RIA / Independent Financial Advisor Group of the Year. Firms may nominate themselves. Keep the submissions rolling in!
Also, please keep an eye out for next week’s two special features: Top African American Leaders in Wealth Management, as well as the Future of Workflow Automation for Wealth Management. We’re very excited about the insights and personal stories related to each of these articles currently under development.
In the meantime, please send us your comments and suggestions on this week’s stories and other relevant and useful topics for you and your business – let us find answers for your concerns!
If you have colleagues and friends who need to learn more about ESG, behavioral finance or cryptoassets, please share with them via email or social media. It only takes a few seconds!
Have a wonderful Presidents Day!
Larry Roth, CEO
Wealth Solutions Report