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Low Appetite for Risk Tolerance

Tuesday, October 05, 2010 - 04:24

Silvercrest Asset Management Group CEO G. Moffett Cochran's main challenge is getting his firm's clients back into equities and expects the S&P 500 to appreciate by at least 10 percent by year's end.

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Guarantor retention immunity trust -- grabs her hot products among the ultra rich but perhaps not for much longer. New rules of the US could kill this means of transferring well. Joining us now from -- grass and other issues facing the ultra rich is Moffett Cochran CEO of silver crest asset management group could to have you here thank you. Prevalent or regrets right now Tell me a little bit about your projections for the stock market you have said that you believe the stock market will rise 10%. In the next year at least but clients are hesitant about moving into stocks. How do you convince them That's a very good question the memory of stock market declines as very fresh in everyone's minds from the 08 timeframe. And the big question as winner enough they're going to reallocate substantially to stocks. It is as you suggest it's our opinion that -- US stock prices are quite attractive -- in the current time. And we expect that the S&P is one measure review -- stock prices will appreciate this year at least 10% in the years closed and we're looking for similar rate of return next year or They bakery ice bucket -- and a CEO of -- asset management group. I'm Rhonda -- this -- writers. Guarantor retention immunity trust -- grabs her hot products among the ultra rich but perhaps not for much longer. New rules of the US could kill this means of transferring well. Joining us now from -- grass and other issues facing the ultra rich is Moffett Cochran CEO of silver crest asset management group could to have you here thank you. Prevalent or regrets right now within the wealth management industry what happens your clients of. They disappear. Well it's very popular planning device right now as a means of moving wealth from one generation to another and the rules have been period of favorable. Toward their creation and then there's concern that the rules may change and make them much less attractive. Getting there will be similar options if those rules do change. Well the concern is is that the rules will become sufficiently unattractive that. Using them as a planning device -- basically be closed down. It's like there's a lot working against the high net -- client right now the Dodds frank financial regulation reform. The possible expiration of the bush tax cuts is there anything the ultra high net worth -- can look forward to you. Well. First of all their ultra high net worth. And that itself has its own pleasures but I don't think that any of them is waiting for something positive to come out of Washington in the current environment so probably not from that source. Tell me a little bit about your projections for the stock market you have said that you believe the stock market will rise 10%. In the next year at least but clients are hesitant about moving into stocks. How do you convince them of this when do you think we're we're going to see these clients decide to be allocated to equity. That's a very good question the memory of stock market declines as very fresh in everyone's minds from the 08 timeframe. And the big question as winner enough they're going to reallocate substantially to stocks. It is as you suggest it's our opinion that -- US stock prices are quite attractive -- in the current time. And we expect that the S&P is one measure review -- stock prices will appreciate this year at least 10% in the years closed and we're looking for similar rate of return next year or so. Part of our challenge is convince our clients that -- US stocks are are good place to have some of their money and cash and fixed income would be a good place to reallocate. From we've certainly seen other time periods perhaps not as severe as what we just went through. Where clients saw losses from investing in equities you think there's some sort of more permanent shift against risk. Well I think there. Could be. I think the magnitude of what we saw in 0708. Was such that. This could be almost a generational change in attitude akin to what occurred after the Great Depression. When. The even the ultra high net worth investor was very slow to come back into stocks. -- could be that could be the case again. There are -- fortunes being made these days he said we've discussed a lot of issues that you're very aggressive on your plans for expansion. Why are you bullish -- prospects for private banking. Well we think. Is a great opportunity for a boutique firms such as ours which offers a full service approach to wealth management to operate with a national footprint. At the present time we only have offices in Boston new York and in Virginia. And we would like very much to have a presence on the West Coast or perhaps something as Chicago perhaps something as well in Florida and so I have been spending a lot of my time talking to people who might be candidates to join us in those places to think that might happen as early as next year. I hope so but the important thing is that a cultural chemistry and client chemistry and to make sure that what the result is as good for the clients and good for the people and it's it's hard to get these things done. Appreciate your time. They bakery ice bucket -- and a CEO of -- asset management group. I'm Rhonda -- this -- writers.

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Low Appetite for Risk Tolerance

Tuesday, October 05, 2010 - 04:24