The Risk of Doing Nothing

Sometimes the biggest risk is not taking enough risk. In a recent survey, Natixis found that market volatility and uncertainty still keeps many investors on the sidelines, with 57% of the respondents indicating that they would not reduce their cash holdings. But advisors can make a difference — 51% of survey respondents said they would consider alternative investments if approached, but only 35% have actually discussed alternatives. Advisors who work with participants and have a sound portfolio construction strategy — one that may include non-correlated investments, like alternatives — may find a receptive (albeit reluctant) audience. These advisors may be able to move some of their clients out of an unreasonable percentage of assets in cash.