What did TD actually see in RIAs’ client portfolios during 2018? Nally said that many advisors affiliated with TD did take more defensive positions during the year. Some clients with big gains also lowered their risk exposure. But few of these moves were dramatic.
This experience dovetails with that of other giant asset management firms like BlackRock, which reported that both retail and institutional clients engaged in moderate de-risking during 2018. "There are questions about the global economic environment and the sustainability of the bull market," he said.
That said, there was no panic. "You don't lose until you sell," Nally said. "We saw some people make some tragic decisions during the financial crisis."