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The ECB’s Big Bazookas (TLTRO & QE)

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The ECB's Big Bazooka

The ECB’s Big Bazookas (TLTRO & QE)

The Eurozone is on the rocks again. In November, business activity fell to its lowest point in 16 months as the Purchasing Managers Index (PMI) dropped to 51.1. The Euro is at a 27 month low against the dollar. Unemployment is stuck at 11.5%.

Making matters worse, deflation is also knocking on the door. In November, prices rose just 0.3% from the previous year, which is far below the 2% target. Nicholas Spiro, managing director of Spiro Sovereign Strategy in London, says, “the data show(s) that the Japanification of the Eurozone remains apace.”

To combat this, The European Central Bank (ECB) has decided to pull out the big guns. The first big gun, in some of the best “Fedspeak” we’ve seen yet is called Targeted Long-Term Refinancing Operations (TLTRO). Banks are able to borrow from the ECB at very low rates if the money is eventually lent to companies, and not for mortgages or buying government debt.

However, since the TLTROs started, results have not been as the ECB has hoped. This is why Mario Draghi and his counterparts have hinted at a bigger bazooka, quantitative easing (QE), over the last few weeks. Tomorrow (Dec 4th) they may decide to finally pull the trigger at the ECB meeting, but some feel that is premature.

“Much like an elementary school student putting off their weekend homework in hopes of a ‘miracle’ snow day canceling school on Monday, the ECB can still hang it’s hopes on the mid-December TLTRO auction as a possible savior,” said Matt Weller, senior technical analyst at Forex.com, in a note.

Original graphic from: Saxo Markets

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Investor Education

The Top 5 Reasons Clients Fire a Financial Advisor

Firing an advisor is often driven by more than cost and performance factors. Here are the top reasons clients ‘break up’ with their advisors.

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The following content is sponsored by Morningstar
This circle graphic shows the top reasons for firing a financial advisor.

The Top 5 Reasons Clients Fire a Financial Advisor

What drives investors to fire a financial advisor?

From saving for a down payment to planning for retirement, clients turn to advisors to guide them through life’s complex financial decisions. However, many of the key reasons for firing a financial advisor stem from emotional factors, and go beyond purely financial motivations.

We partnered with Morningstar to show the top reasons clients fire an advisor to provide insight on what’s driving investor behavior.

What Drives Firing Decisions?

Here are the top reasons clients terminated their advisor, based on a survey of 184 respondents:

Reason for Firing% of Respondents
Citing This Reason
Type of Motivation
Quality of financial advice
and services
32%Emotion-based reason
Quality of relationship21%Emotion-based reason
Cost of services17%Financial-based reason
Return performance11%Financial-based reason
Comfort handling financial
issues on their own
10%Emotion-based reason

Numbers may not total 100 due to rounding. Respondents could select more than one answer.

While firing an advisor is rare, many of the primary drivers behind firing decisions are also emotionally driven.

Often, advisors were fired due to the quality of the relationship. In many cases, this was due to an advisor not dedicating enough time to fully grasp their personal financial goals. Additionally, wealthier, and more financially literate clients are more likely to fire their advisors—highlighting the importance of understanding the client. 

Key Takeaways

Given these driving factors, here are five ways that advisors can build a lasting relationship through recognizing their clients’ emotional needs:

  • Understand your clients’ deeper goals
  • Reach out proactively
  • Act as a financial coach
  • Keep clients updated
  • Conduct goal-setting exercises on a regular basis

By communicating their value and setting expectations early, advisors can help prevent setbacks in their practice by adeptly recognizing the emotional motivators of their clients.

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Curious about what drives investors to hire a financial advisor? Discover the top 5 reasons here.

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