The Asset Allocator: Dalbar's Investor Panic-Relief Tool (Podcast)
Dec. 03, 2019 7:15 AM ET
- For a quarter of a century, Dalbar has highlighted the problem of poor investor performance, fueled by return-chasing and panic selling; now it wants to offer a practical solution.
- Dalbar has developed a panic button targeting financial advisors, and interested individual investors, aimed at preventing financial suicide.
- Its “Investor Panic Relief Tool” is designed to help advisors help their clients at the point of panic, providing a meaningful and appealing alternative to selling.
- The tool presents a put option as inferior to doing nothing, but as superior to selling, and backs that up with dollars-and-cents calculations.
Listen on the go! Subscribe to the SA for FAs podcast on iTunes, Stitcher and SoundCloud (click the highlighted links).
For a quarter of a century, Dalbar has highlighted the problem of poor investor performance, fueled by return-chasing and panic selling; now it is offering a practical solution it calls I-PRT (Investor Panic Relief Tool).
This podcast (7:15) explains that Dalbar’s solution is not to prepare investors ahead of time with education that doesn’t work, but rather to prepare the advisor ahead of time with a tool that could tilt the scales of the “fight or flight” reaction toward “fight.”
This article was written by
GIL WEINREICH - Author of "The Mentor," a unique parable for financial advisors and those who aspire to become one. I have worked in the FA arena since 1997, and during that time, the New York State Society of CPAs twice awarded its prestigious Excellence in Financial Journalism award to me for a monthly column I wrote on business ethics. Previously, I reported on international news for Voice of America (where I was awarded a newsroom writing award) and prior to that worked as an editorial assistant at U.S. News and World Report. I live with my wife and children amidst the verdant and vibrant hills and dales of Jerusalem.