Lifeboat Drills

Walker, Lewis J.
October 1995
Journal of Financial Planning;Oct95, Vol. 8 Issue 4, p154
Academic Journal
This article suggests that the failure of so many advisers has led to an economic shift from a deflationary trend back to an inflationary trend. Recently financial planner explained that the returns now available in stocks were such that people should move the equity in their homes into the market. A 2% rise in interest rates will drop the market value of a long-term bond by almost 26%. Some so-called conservative bond funds were down in ranges of that magnitude. Could that not happen on the equity side? The last major bear market was more than 20 years ago. Many of today's investors were children or teenagers in the early 1970's. That you cannot lose money in the stock market long term has become a mantra of unquestionable veracity. It takes a 100% gain to offset a 50% loss. Since 1990, the Nikkei Index has dropped from 40,000 to 14,700--a staggering loss of 63%. Nay-sayers and proponents of mania theories point to the explosion in the number of mutual funds, now over 8,100--more than twice the number of shares on the New York and American Stock Exchanges. It's estimated that roughly 70% of all the money currently invested in mutual funds has migrated from bank savings in the past three years.


Related Articles

  • THE FEELING'S MUTUAL. Cramer, James J. // New York;01/22/2001, Vol. 34 Issue 3, p37 

    Recommends several mutual fund managers and investment advisers based in the United States who are tasked to organize stock trading for customers. Bill Miller of the Legg Mason Value Trust; Richie Freeman from Smith Barney Aggressive Growth; Elizabeth Bramwell of Bramwell Growth.

  • Betting on Homebuilders. French, Kristen // Financial Planning;Mar2005, Vol. 35 Issue 3, p52 

    Profiles Sam Lieber, manager of Alpine U.S. Real Estate Equity fund. Educational background; Professional career; His investment strategy.

  • Observer.  // Journal of Financial Planning;Jan2006, Vol. 19 Issue 1, p28 

    The article presents news briefs related to the financial planning industry in the U.S. as of January 2006. Spectrem Group reported that a large proportion of investors in the country are interested in investing in mutual funds. The energy generating sector of the nation is performing well since...

  • Stealth Wealth. Walker, Lewis J. // Journal of Financial Planning;Apr92, Vol. 5 Issue 2, p57 

    For financial planners and investment advisors, it was the Christmas that stole the Grinch. One could suppose that rim since December 1929, has there been such a "bah humbug" holiday as the author and his colleagues witnessed the twelfth-month past. Yet, amidst a near hysterical media-driven...

  • First Things First. Dyer, Phil; Kinder, George // Advisor Today;Sep2008, Vol. 103 Issue 9, p64 

    The article focuses on financial planning in the U.S. It cites the importance of creating a life plan for the clients before addressing his financial plan. It states that the financial-planning profession has undergone profound change, transitioning from a product-oriented, transaction-based...

  • The Hot Job of Financial Planning&hellip.  // Journal of Financial Planning;Feb1998, Vol. 11 Issue 1, p16 

    Comments on the article featured in "U.S. News & World Report" about financial planning. Popularity of the career in financial planning; Demand for financial planners in the banking, brokerage and mutual fund fields; Failure of the magazine to mention designations or licenses.

  • Trading Places. McGee, Suzanne // Financial Planning;Sep2008, Vol. 38 Issue 9, p59 

    The article discusses the move of planners, investment advisors, and other wealth managers to change firms in the U.S. It is noted that for many advisors, switching firms or launching their own shop can be dangerous, since clients can feel neglected or taken for granted. In addition, if the...

  • When the Whole World is Your Client... Thompson, Duane R. // Journal of Financial Planning;Jun2000, Vol. 13 Issue 6, p32 

    This article explores the client engagements of certified financial planners in the U.S. In 1999, the Certified Financial Planner Board of Standards Inc. (CFP) adopted a revised definition of client, affirming that a practitioner is engaged when an individual reasonably relies upon information...

  • Serving the Underserved: Is There a Professional Obligation? Opiela, Nancy // Journal of Financial Planning;Jun2000, Vol. 13 Issue 6, p76 

    This article describes various pro bono work that U.S. financial planners offer to their clients. Spring Leonard, a certified financial planner of SBL Financial Enterprise in Norfolk, Massachusetts, often offers help free of charge. Certified Financial Planner Board of Standards Inc. president...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics