Caplan says Jefferson National’s advisors were also confident in their preparation.
“We’ve heard some advisors say that they felt correctly positioned and were reaffirming to clients the need to stay the course,” Caplan says. “Others said that this was going to be a purchase opportunity, to that end we’ve seen an increase in cash positions like money markets over the past several weeks.
“Most interesting was that advisors felt like this was their time to shine and prove the value that they bring to their clients.”
For example, Caplan says, investors who completely self-direct or use robo-advisory services with no human component could have suffered from a lack of guidance during Monday’s sell-off.
“If you are using a robo-advisor, you probably didn’t get a message from them saying not to panic this morning,” Caplan says. “I’m a big believer in technology, but you can’t replace human capital.”
While Smith believes that Monday’s declines may be a five-to-ten percent market correction, he also says the drop needs to be put in perspective.
“We haven’t had a 10 percent correction in over six years, and it’s been since 2011 since we’ve had a five percent correction,” Smith says. “When it’s been this long, everyone overreacts. We need to see this type of volatility. Markets are going back to being markets.”
At Houston First Financial Group, Hensley says that a little anxiety is natural.
“We have had quite a run over the last few years, and in my opinion we’re overdue for a significant correction in the market,” Hensley says. “The truth is that nobody knows for sure when that will be. I never speculate on what the market will do, I let the market tell me what it is doing.”
Now is an ideal time to revisit portfolio allocations and optimize.