John Dubots, Financial Advisor, Says Advisors Have Become More Tactical

John P. Dubots, of Dubots Capital Management, says financial advisors have become more tactical in recent years.
By: Dubots Capital Management
TEMECULA, Calif. - April 15, 2013 - PRLog -- Ever since the 2008-2009 financial crisis, many financial advisors have been thrown off their game a bit. Quite a few have recognized the need to shift away from buy and hold strategies toward a more active involvement with the market. In fact, more than half of the 10,000 advisors included in recent research by Cerulli Associates Inc. stated that they've shifted their strategies more toward tactical portfolio management.

When the same study was conducted in 2009, tactical portfolio management didn't even seem to be utilized by most financial advisors. So why the big shift over just a few years? The recent financial crisis forced a change in the industry, and most advisors realized that long-term strategic allocation strategies just weren't working for their clients. They began to pull away from risky assets, and started to capitalize on shorter-term opportunities in order to benefit their clients.

While many financial advisors still insist upon sticking with the old buy and hold method, clients of advisors who employ tactical methods are reportedly loving the change. During the financial crisis, nearly every asset class fell in stride, so these advisors reconsidered everything they had learned in the past. Those who switched to a more tactical method learned to set stop orders to limit losses and seek out new areas of opportunity. For example, in the fixed-income arena, migrating from static allocations to low-yielding indexes toward a more aggressive mixture of high-yield exchange-traded funds has been a worthwhile and rewarding switch in tactics.

While some advisors still hold to the old ways of managing portfolios, more and more are realizing the benefits of actively managing at least part of a portfolio at all times. After the recent tough economic times, many have learned to adjust methods in order to better benefit their clients. An advisor who is qualified and experienced in tactical portfolio management, and understands when to utilize it, is generally going to see happier clients and better returns on investments than an advisor who refuses to respond to current economic conditions.

John Dubots is President and founder of Dubots Capital Management. Visit company website at

Investment Advisory Services offered through John P. Dubots Capital Management, LLC, CA License # 0822926
Tags:John Dubots, John P. Dubots, Temecula Financial Advisor, Tactical Portfolio Management
Industry:Financial, Investment
Location:Temecula - California - United States
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