Austin Frye Interviewed by Investment News About Clients’ Reactions to Current Market

January 30, 2018 | posted in: Blog, Financial Insights, In The News | by
As stocks have soared this year, some clients need their fears calmed, while others ask about investing more.

John Waggoner of Investment News interviewed Austin for an article discussing clients’ reactions to the current market conditions.  As he explains, “Despite the sell-off Monday and Tuesday, the stock market’s strength this year (and over the previous 12 months) has been breathtaking. Advisers are being hit with two questions: Should I cash in my chips? Or should I add more to the pot?  It’s a big decision, prompted by big moves in the stock market. As of the close of trading Monday, the Standard & Poor’s 500 index had soared 6.8% so far this year, including reinvested dividends, according to Morningstar Inc. That’s more than half the 10.2% average annual return from large-company stocks since 1926. Nearly 60 U.S. domestic mutual funds have already beaten the long-term average this year.”

Austin provided his perspective on the topic: “Not everyone is worried about a crash, however. “Some clients have been calling during the ride up asking if this is too good to be true, and telling me they are nervous about a downturn,” said Austin Frye, president of Frye Financial Center. “When I suggest to them that if they are nervous about things, perhaps we should rebalance and take some gains off the table, they turn me down. The metaphor I use for this behavior is as follows; They are at a terrific party that everyone knows has to end at some point, but no one wants to leave the party too early, afraid that they may miss out on more fun to come.”

 

Click here to read the full article.