Advisors Tweak Portfolios to Counter AI and Debt Fears as $1.8 Billion All-Weather Funds Grow
Updated
Updated · Business Insider · Sep 27
Advisors Tweak Portfolios to Counter AI and Debt Fears as $1.8 Billion All-Weather Funds Grow
1 articles · Updated · Business Insider · Sep 27
Summary
Client anxiety over AI, sovereign debt, climate risks and geopolitics is pushing financial advisors to spend more time stopping fear-driven trades that could derail long-term returns.
Advisors say negativity bias and alarm-heavy media make catastrophe easier to imagine than gains, so they increasingly act as behavioral coaches as well as portfolio managers.
Portfolio fixes are being tailored to each fear: some clients shift toward non-correlated assets, while others get small positions—about 1% of a $1 million account—to satisfy high-conviction worries without overhauling strategy.
True North's Dhruv Maniktala says betting entirely on doom can leave investors too far behind if markets keep rising; his firm now manages $1.8 billion in hedged, all-weather funds opened to outside advisors.
Advisors still argue the core message is to stay invested: one cited measure is that the U.S. stock market has never posted negative returns over any 20-year period in modern history.