Top
When a big market meme—the upcoming election—collides with summer gatherings, it creates a crescendo of referable moments. A referable moment is anytime the topic of financial markets, money, retirement, financial plans or legacy comes up in conversation between your client and a friend, family member or colleague when you're not in the room. It either turns into a conversation about you or it doesn't.
How do you increase the chances that you'll organically pop up in conversations? Develop and articulate your theses—timely, pithy, soundbites that connect the dots to the advice you are delivering to your clients. We turned to Parametric managing director and head of SMA portfolio management Nisha Patel for inspiration.
David: "Nisha, you recently shared a rather bold thesis. You believe 'muni bonds will win the election.' Can you elaborate?"
Nisha: "Let's think about all fixed income investing in general. Fixed income as an asset class should perform well if the trend of softening inflation and employment data continues. If the Fed cuts, even once, yields could re-adjust lower to price in a cooling economy."
David: "That makes sense. Let's go back to your thesis. Why munis now?"
Nisha: "It's hard to imagine that debt and deficits will continue to run at this pace. The US debt to GDP ratio is 123%, according to the International Monetary Fund, and in line with other major global economies. The interest cost of US debt alone is more than defense spending. If the US sets a policy objective of reducing its debt, higher taxes may be an important component of a solution, no matter the results of the upcoming election—making munis more favorable tomorrow due to their tax-favored component."
How might Nisha's thesis help you capture a referable moment this summer? Consider your client conversing with a friend at a cookout:
Friend: "Who do you think is going to win the election?"
Client: "We think muni bonds will win the election."
Friend: "What do muni bonds have to do with it?"
Client: "Our advisor, Jennifer, says that no matter the election outcome, taxes may likely go up considering the deficits we're facing—making muni bonds more favorable tomorrow."
Is your ability to influence the conversation between your client and a friend as easy as delivering a message that helps your client look smart? Could it be that simple? We think so.
Bottom line: Capitalize on this summer's upcoming crescendo of referable moments by developing and articulating your theses to influence the conversation when you aren't in the room.
Featured Insights
At the Advisor Institute, our goal is not to shape your opinion or provide investment advice, rather to share this viewpoint as an example of what we believe to be a superb display of ism articulation.
The views and opinions and/or analysis expressed are those of the author or the investment team as of the date of preparation of this material and are subject to change at any time without notice due to market or economic conditions and may not necessarily come to pass. Furthermore, the views will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring, after the date of publication. The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) and its subsidiaries and affiliates (collectively “the Firm”), and may not be reflected in all the strategies and products that the Firm offers.
Forecasts and/or estimates provided herein are subject to change and may not actually come to pass. Information regarding expected market returns and market outlooks is based on the research, analysis and opinions of the authors or the investment team. These conclusions are speculative in nature, may not come to pass and are not intended to predict the future performance of any specific strategy or product the Firm offers. Future results may differ significantly depending on factors such as changes in securities or financial markets or general economic conditions.
This material has been prepared on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. However, no assurances are provided regarding the reliability of such information and the Firm has not sought to independently verify information taken from public and third-party sources.
This material is a general communication, which is not impartial and all information provided has been prepared solely for informational and educational purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.
Charts and graphs provided herein are for illustrative purposes only. Past performance is no guarantee of future results. The indexes are unmanaged and do not include any expenses, fees or sales charges. It is not possible to invest directly in an index. Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor. Any product based on an index is in no way sponsored, endorsed, sold or promoted by the applicable licensor and it shall not have any liability with respect thereto.
This image indicates content designed specifically for Financial Advisors / Investment Professionals. This material is not to be used with the public.