What is sad is that while they are going after the HNW investor more and more there are a ton of misconceptions as to what a HNW investor needs. Many advisors that are new to working with HNW investors will just try and put all of their money into the same crap that they have always pushed. Guess what folks? A 70/30 mix of stocks and bonds just doesn't, or at least should not cut it when dealing with real money.
Instead it is imperative that brokers and advisors do a lot of homework and become proficient and alternative investments like hedge funds, private equity, venture capital, advanced tax strategies, timber, real estate, etc. Essentially you must learn the ins and outs to just about everything.
If you don't know what a global macro hedge fund is and how it looks at things then you need to learn. if statistical arbitrage scares you then grow up and do some homework. Strategies like convertible bond arbitrage, volatility arbitrage and the like are all commonplace investment strategies in the world of HNW investors and you better be up on the advantages and disadvantages of them.
David_Taggart
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