Financial advisors often promote their services by saying that they can help remove emotions from investing. In theory, advisors can use a variety of risk management tools, knowledge of capital markets, and long-term investing perspectives to help their clients avoid making costly knee jerk reactions.

Brexit is just one example, but it can be a powerful case study for advisors seeking to help clients understand why emotions should be curtailed by financial professionals who are armed with capital markets expertise.

In the months leading up to the Brexit referendum, markets climbed and declined in response to changing expectations for how the country’s citizens would vote. In the final days before the vote, investor sentiment strengthened as pundits increasingly said a vote in favor of the U.K. pulling out of the European Union was unlikely.

Many investors had previously feared that Brexit would hinder economic growth in Europe and create a challenging environment for U.S. companies and business in other countries that sell products in the continent.

Indeed, Brexit is likely to mean that U.K. will have to forge new trade agreements with individual members of the European Union and is likely to have to do the same with U.S. exporters.

When the Brexit referendum surprisingly determined that voters want to leave the U.K., panic ensured. On June 24, when the results were released, U.S. equities dropped approximately 3%. It was the worst single-day decline for the S&P 500 in nearly a year and wiped away the index’s gain for 2016, according CNBC.

By the end of June 27, the index had dropped 4.07%. The decline, however, was only temporary. Indeed, during the last three days of June, the S&P climbed 4.95% and, as of July 8, had generated a total return of 4.21% year-to-date.

Investors who panicked by selling in the days immediately after Brexit are likely to have sold during a dip, only to miss the strong returns when equities bounced back. With that in mind, advisors should explain to their clients that panic selling often results in selling low and then missing out on the strong returns that typically follow market dips.

They should explain, furthermore, that using portfolio diversification to cushion declines, maintaining a long-term perspective, and understanding the role of corporate fundamentals can go a long way in helping investors avoid panic selling.

Advisors should develop illustrations that show how having a mix of asset classes could have reduced the impact upon a portfolio of the post-Brexit market decline and that portfolio rebalancing may have resulted in buying equities during the market dip.

They should also show index performance numbers that illustrate how riding out historical market declines, including the correction associated with the Great Recession, would have allowed investors to recoup losses and then eventually achieve additional gains.

Finally, advisors should point out that corporate fundamentals don’t justify a major prolonged market correction. While overall corporate earnings in the U.S. have taken a hit due to cheap oil, many industries, such as Information Technology, are experiencing strong sales and improving profits.

Innovation, meanwhile, is allowing companies like Amazon.com and Netflix to rapidly grow their earnings by disrupting traditional business models with technology. At the same time, corporations are holding near record levels of cash, which is allowing them to buy back stock, launch dividends, and conduct mergers and acquisitions at near record levels.

All of those actions provide additional support to stock prices. The U.S. economy is also likely to support corporate fundamentals. While U.S. economic growth has been slow, many developments are encouraging, with the labor market strengthening, real estate values increasing, and consumers’ finances improving.

Collecting Social Security early can help retirees assess how much they can spend because the payments are consistent. So reports Wealth Management.

Also, proponents of waiting typically point to the 8% payment increase you get for delaying the payments. However, the nominal annualized reture when waiting a year is less than 8% and retirees will miss out on a full year of payments. 

Lastly, collecting Social Security may be more attractive than withdrawing money from an IRA when considering taxes.

Read the full article from Wealth Management.

The Securities and Exchange Commission recently awarded a whistleblower $3 million for information that helped the regulator crack a complex case of fraud. So reports ThinkAdvisor. The program was established more than three years ago and has paid out more than $50 million to whistleblowers.

Read the full article from Think Advisor.

Robert Renshaw has joined Edison, N.J.-based Fountainhead Capital Management as senior financial strategist. So reports TapintoEdison.

Fountainhead Managing Partner Marc Rock says Renshaw’s strength involves understanding each client’s unique circumstances and partnering with the appropriate team members to create customized strategies.

Read the full release from TapintoEdison.

James Gorman, CEO of Morgan Stanley, said that while the chances of a recession have grown to 50%, he doesn’t expect the economy to fall “into some massive hole over the next few years.” So reports CNBC.

Gorman said that it may be a “bumpy” ride for a while, and that the Fed waited too long to raise rates, but that he believes it will eventually get inflation under control.

Jamie Dimon, CEO of rival JPMorgan has said he thinks there is a “hurricane” ahead. However, Gorman says that he doesn’t see a “deep or long recession.”

Read the full article from CNBC.

Bitcoin’s recent beating has left it below its fair price, giving it “significant upside,” according to JPMorgan Chase. So reports CNBC.

In a recent research note, JPMorgan says Bitcoin is undervalued by 28%. Strategist Nikolaos Panigirtzoglou said the recent crypto market correction “looks more like capitulation relative to last January/February.”

The research note is significant because of CEO Jamie Dimon’s previous comments on cryptocurrency. Dimon has previously said he thinks Bitcoin is “worthless” and that he has no interest in it.

Read the full article from CNBC.

Many financial advisors have kept crypto at arm’s length, but investor demand may push reluctant FAs to work with the assets, according to a new Cerulli report. So reports CNBC.

Almost half (45%) of FAs expect to use crypto in the future due to client requests, according to the report. Currently, only 7% are using cypto because they recommended it, while another 10% are using crypto because clients asked for it.

Senior Cerulli analyst Matt Apkarian said that if “advisors aren’t including [crypto] or at least having some sort of stance on it, then they’re placing themselves at a disadvantage and could potentially lose clients over it.”

Read the full article from CNBC.

In a recent memo, Morgan Stanley said it plans to launch an ETF platform later in 2022. So reports CNBC.

It is hiring Goldman Sachs’ Anthony Rochte as Global Head of ETFs and BlackRock’s Allyson Wallace as Global Head of ETF Capital Markets to help lead the platform.

The “first class ETF platform” will help the firm to match its “world class investment capabilities with the diverse set of investment vehicles our clients increasingly demand.”

Read the full article from CNBC.

Wells Fargo is temporarily nixing a two-year-old policy requiring managers to interview a slate of diverse candidates before extending a job offer. So reports CBS News.

The move comes just weeks after former employees told The New York Times they were instructed to conduct “fake interviews” with candidates of color who had no chance at the jobs. One of the employees says he was fired for speaking out against the practice.

The firm say that it will relaunch the policy next month after it makes adjustments and retrains hiring managers. In the meantime, the company says it still plans to hire candidates of color.

Read the full article from CBS News.

UBS Wealth Management broker Jonathan Bottema recently made his one-millionth cold call to a potential client. So reports Advisor Hub.

Jason Chandler, head of the UBS’ U.S. brokerage business, congratulated Bottema in a recent LinkedIn post, adding that the accomplishment is a “shining example of hard work and determination.”

However, some were skeptical of the claim, noting that Bottema would have had make in excess of 200 calls per workday, for more than 20 years, to hit the one million mark.

Read the full article from Advisor Hub.

Wells Fargo Advisors has told clients that financial advisor Robert Brian Watson, who left Wells Fargo in April, is dead. The only problem is he is very much alive and practicing from his Atlanta office as an independent broker at oXYGen Financial, which is affiliated with Kestra Financial. So reports Advisor Hub.

Wells sent a letter to clients eulogizing Watson and introducing them to a new Wells advisor, Arthur Sinkler III. The letter noted they are “saddened” by Watson’s death and that he will “be missed by all.” The letter said Sinkler is “fully committed to continuing Brian’s legacy serving your investment needs.”

The article noted Sinkler was not likely involved in drafting or sending the note.

Wells Fargo apologized, saying the letter was “an unfortunate mistake.”

Read the full article from Advisor Hub.

Vlad Tenev, CEO of Robinhood, said the firm is cutting 9% of its workforce. So reports CNN.

The layoffs are to reduce duplicate roles and eliminate unnecessary layers of complexity following a period of massive growth in headcount, according to Tenev. Since the beginning of 2020, Robinhood’s ranks have grown from 700 to 3,800 workers.

Read the full article from CNN.

Last year Edward Jones launched a pilot program to allow brokers to share office space. Now, the company has indicated allowing brokers to team up is coming, breaking with its longstanding solo practitioner model. So reports Advisor Hub.

By the end of 2023, each of the firm’s 19,000 advisors will be able to team up with another advisor to share a branch office. The firm is also testing allowing veteran brokers to add a junior partner.

A company executive overseeing branch development said that teaming “enables our branch teams to stay competitive and deliver on the complex needs of our clients and investors more effectively.”

Read the full article from Advisor Hub.

There have been many columns written about how millennials have rejected financial advisors in favor of self-directed platforms. But that’s not completely accurate. So reports U.S. News & World Report.

Many millennials may indeed be utilizing self-directed platforms, but that doesn’t mean they are rejecting financial advice. In fact, many may both need and be looking for financial guidance. A recent survey by the National Association of Personal Financial Advisors (NAPFA) found that many millennials feel underprepared for retirement and this is due to inadequate financial guidance.

It would be more accurate to say millennials are rejecting the traditional role that financial advisors have played for generations, says Brian Stivers of Stivers Financial Services. Investment strategies have evolved and advisors need to as well. It can be as simple as virtual meetings, or developing e-tools.

Advisors also need to be articulate their value to millennials. And they need to remember many millennials have never experienced a real market crash.

Read the full article from the U.S. News & World Report.

New research from Robert Half finds that 56% of U.S. companies have experienced pay compression in the Last 12 months. Of those, 62% are increasing salaries for current staff to help close wage gaps. Robert Half Salary Guide features data to benchmark compensation for 500-plus positions.

"Market conditions have shifted dramatically, and savvy employers are stepping up to address salary gaps and ensure all employees are being paid fairly," said Robert Half senior executive director Paul McDonald. "They know that taking a cautious 'wait-and-see' approach on compensation is risky and can lead to the loss of great talent."

There are several factors at play when it comes to wage growth, and employees' expectations are among them. In a separate survey of more than 1,000 U.S. workers, one-third of respondents (34%) said they have not had a raise in 12 months and another 16% received one but were disappointed with the amount.
In addition, nearly two-thirds (62%) plan to ask for a raise this year, with the top reasons being:

1. To adjust for the higher cost of living (30%)
2. To reflect current market rates (23%)
3. To account for additional job responsibilities (22%)

If workers don't get a raise:

• 31% will ask to revisit the salary conversation in a few months
• 27% will look for a new job with higher pay
• 23% will ask for more perks

In addition to setting competitive salaries, companies must consider the entire employee experience and deliver programs that satisfy their professional and personal needs,” McDonald says. “Career advancement and remote options are two big priorities for workers today."

Read the full release from Robert Half. 

Integrated Wealth Concepts LLC in Waltham, MA, Mutual Advisors, LLC in Casper, WY and Oakmont Corporation in Los Angeles, CA are the top three fastest growing financial advisors, according to a new ranking by from the Investment Advisor Association and National Regulatory Services. So reports Yahoo! Finance.

The rankings were part of the organizations’ top 50 rankings. The report also found that younger firms are among some of the fastest growing, with six of the top 10 firms on the list having been founded in the last decade.

The report also found that growth is slower in the South, with just four firms overall on the list, and none in the top ten, from the South. The highest ranking firm from the South is Heritage Wealth Advisors in Richmond, Virginia, which ranking 19th on the list.

Read the top 50 rankings and the full article from Yahoo! Finance.