00:00We talk a lot on this about on the show about investor sentiment. And I mean you can look at the price action and I guess you can divine that investors are optimistic or at least they're certainly confident in what's going on today. But is that a true reflection of how people feel particularly individual investors. On average I think it's a true reflection. But realize that especially at a company like Edward Jones who has a hundred thousand engagements with our clients every single day. Every client has a story.
00:29Every client has a different set of needs and wants and wishes and everything that you just described. They're very interested in how it's going to impact them and their family and their plan. And so that's what we work to personalize the insight and the perspective and the opportunity that comes from all of that.
00:47I would say that broadly our our clients are pretty sanguine right now. The reasons that we can tell that is that they are continuing to put money into their investment accounts. Interestingly they are removing money from their investment accounts. Their spending is up.
01:05So generally we believe that that means that they are feeling fairly confident about the about the go forward in the near term. What's important right now with all the things that you just described though is that there probably is volatility coming.
01:21I think I think I just read that this is the fifth strongest six month rally in the last 75 years since last April. So that means we're we're probably right for some volatility.
01:35But with that I mean is this the type of scenario where people they walk into an Edward Jones branch and they say get me out or protect me or is it the opposite.
01:44Are they saying you know make sure that I'm in and take any additional money I have so I can ride this wave. Generally it is that and the reason that it is that way is because our financial advisors work with our clients to take a longer view and to take the emotion out of the market.
02:01Now now now y'all put a little bit of motion back in the market sometimes right. And so when we focus people on their medium and long term goals albeit with the right kind of planning asset allocation and an emergency cash we set up their plan so that they can ride some of this out.
02:19And so that when the markets do get volatile or go lower that they can take opportunities that they can rebalance that they can invest and and take advantage of that opportunity.
02:30Well you mentioned all the different daily engagements that you have with your clients when your clients are thinking about the medium the long term what are those conversations sound like what topics keep bubbling up to the surface.
02:42Yeah I've just come back from from Minnesota and from Florida client engagements and being with our practice teams every conversation that I have with a client turns to multi-generation they talk about their parents and they talk about their children.
02:59And they talk about the the opportunities that their kids have today to save and invest to buy a home.
03:06What does a I mean for their jobs and their job prospects.
03:11So every conversation turns real personal that way and then they're they're looking for insight for how do I invest for the longer term.
03:20They're they're very interested in understanding the these unique new products that are being that are being discussed in the markets.
03:30Cryptocurrency is one of them. Privates is another one of them.
03:34They want perspective on how those might or might not fit into their investment management situation.
03:41I think that's really interesting. I mean when you talk about cryptocurrencies. Yes.
03:44When you talk about private assets too. I feel like a lot of the discussions that we have tend to gravitate towards.
03:50OK. If you are planning for your family for the long term how do you actually get access to some of those markets.
03:58And there's been various structures various fund structures that seem to be popular right now.
04:03But you know I wonder where Edward Jones falls on that. Like what is the proper vehicle to to access some of those exposures.
04:11Right. Well it'll be different for different kinds of investors. Our high net worth clients in our generations program which is our most
04:19customized and bespoke experience for high and ultra high net worth clients. Those with more complex needs.
04:26They will often find and we believe that that a small allocation to privates is really important for them.
04:33Public equities and fixed income have become more correlated over time.
04:38And so the diversification that can be gained from privates is appropriate. But private investments are not appropriate for my 30 year old children.
04:46And so we won't be representing them for for those kinds of clients. The more traditional asset classes are going to be right as as my girls get started on their on their investment journey.
04:58The other thing that we have to recognize is that private investments are structured differently than the public investment vehicles that we are used to.
05:08The liquidity the price and value transparency. That's going to be a very different experience for investors and they need to understand that the the asset managers are coming together in unique kinds of partnerships to build those sorts of investment vehicles.
05:24But this is a new day in terms of access access to those markets and the rules of the road still apply. What is your risk tolerance. What's your time horizon.
05:34How open are you to the ups and downs and in the market. And what what are the goals that you're trying to accomplish. Those rules of the road still apply.
05:42But on the private side I mean obviously there's a determination of whether it's appropriate for each individual investor's scenario.
05:50But I am curious as to how you staff up or how you prepare your staff to educate folks when they do come in and ask these questions. I was just recently at a private credit conference.
06:00And I was astonished at how many advisors were there in the room relative to past years. Yes. And it gets to the question is a I guess have you been approached as Edward Jones
06:09been approached by any of these private capital firms about working together in some way. Because what you do and that that whole wealth channel now is their sort of entry point.
06:18Sure. At least the way they see it into the future. Absolutely. I mean they know what I just shared a hundred thousand engagements a day with with with with main
06:27street investors nine million clients. And so they we have been approached and in fact are are working with various companies enduring strategic
06:37partners that we've had for years to ensure that we get this right as as we open these vehicles to more investors. I do want to go back to something you
06:48said that you know when it comes to private assets maybe not appropriate for a 30 year old. Tell me why not because that actually seems a little bit
06:56unintuitive to me if you think that private markets are riskier. So maybe that's something that you know would be
07:01appropriate for a younger investor. I love it that you're calling me on my own rules. That's perfect. That's perfect. Well you know so so so maybe I
07:13ought to I ought to take your take your lead on that and say a 30 year old with with less complex needs who's getting who's just getting
07:22started in their investment journey. We want to make sure that they have a good experience. Interestingly the experience that new investors
07:34have in the markets at the time that they begin investing shapes their risk tolerance for the rest of their lives. And so if they have a really bad
07:45experience one that they don't understand or really rocky experience at the very beginning of their investing career. Often their risk
07:52tolerance goes lower and goes too low over time. It's that. Oh I got bit once. I don't want to do that again. And so we want to make sure that
08:02those rules of the road are really well understood by clients at all stages in their investing journey. And that's the nature of the
08:09conversation that our financial advisors have with with all the families they serve. Real quick only have a little bit of time left. But with regards to just
08:16where you see a where Jones going next here. I mean there's been a lot of talk about the pursuit of a bank charter and just the
08:22general evolution of ever Jones into I think whatever you want it to be. I guess the question is a why pursue that and be what is the end goal. Yeah. Well what we know in the
08:33marketplace is that there is a shortage of financial advice. People are aging. Things are becoming more complex. They want a great marriage of a human
08:42financial advisor that's backed up by good technology and they want a a financial hub for their short medium and long term needs. So
08:51Edward Jones has an I'll see bank charter in front of the F.D. I see today an application for that. We have just announced a
08:59partnership with U.S. Bank for what we call Edward Jones everyday solutions for cash management short term checking accounts. We are we've
09:10established ourselves as a financial planning firm so that we can help clients across all aspects of their financial
09:16needs. And we're meeting clients where they are our high net worth clients through our workplace solutions through
09:24financial planning and digitally and through technology. We've been here for seven generations of investors. We want to be here for many
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