Salutations From The Sell Side

I got a great email from a new reader who works at one of the big wirehouse firms. I will respect his confidentiality by not revealing any detail other than to say that he acknowledged that there is a huge time crunch that plays a role in dictating what he does and does not do with clients.

He was struck by a comment that I made ages ago about managed money at a wirehouse. When your broker gives your money to a manager, that manager has to assume that the asset allocation decision has been made and invest that money in whatever discipline that is their job.

I suppose there may be exceptions but not at the emailer's firm.

I have friends at various stages of production who all talk about how much time they do or don't have or how much new business they have to create. The situation puts the brokers in a huge dilemma.

At my firm I see all sorts of statements from prospective clients with holdings that, when not put together by a separate account manager, clearly show a lack of training and understanding about how to diversify a portfolio.

There may be no broad societal consequence to anyone for this quagmire, but it is that; a quagmire. This is not a pitch to hire someone like me as I have made it clear that I think the future is with more empowered do-it-yourselfers. But there will be isolated destruction of individual wealth at the wirehouses.