A recent article in Wealthmanagement.com by Samuel Steinberger touched upon a growing sentiment within the wealth management industry that financial advisors should be taking more of an active approach in fixed income given the current economic climate.
Not only is it becoming common with financial advisors, but also other areas of the financial sector, such as asset managers. Holly Donaldson, a former banker and an author of a book regarding the psychology of money, said there are certain behavior biases that exist among those working within the financial industry and those who don’t.
“If I feel like I can’t control something, I feel better about at least doing something than not doing something,” Donaldson said. “So active products play to that bias—at least we’re doing something.”
To read the complete article, click here.
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