00:00 Speaker A

Do you get a sense that uh your clients have missed a lot of this rally?

00:06 Speaker B

I don’t get that sense at all. Our clients have been invested. Uh, they’ve been invested in equities and their balances are at an all-time high.

00:13 Speaker A

Meaning they’re chasing performance I think is what I was

00:15 Speaker B

Oh, are they chasing performance? I you know, I think that uh actually in a lot of ways retail investors have led the markets this year. They were the ones buying at the the low in April. and people were pointing at retail investors saying, oh gosh, retail investors are making a mistake, but we’re 30% higher than we were back then and and credit to the retail investor. I think they’ve been on a a right about a lot of things over the past few years.

00:36 Speaker A

Yes, they have. I mean we are I mean Yahoo Finance is the home uh for the retail investor. We see the excitement on our platform. Um Rick, where how has the retail investor changed this year?

00:46 Speaker A

I I think when people say retail investor, ah, it’s the uneducated person who’s trading stocks in someone’s basement. That’s not the retail investor I’ve interacted with.

00:54 Speaker B

I couldn’t agree more with you Brian. Our our retail investors, they’re engaged in the market, they’re engaged in research and education. I’m sure you see it on your platform in terms of the views. We we spend about 35 hours a week providing coaching on how to become an investor, how to how to trade and and that’s being consumed at at record levels. Uh

01:17 Speaker B

the other thing we see from retail investors this year is more demand for advice. More and more clients are wanting help in their financial life, and so we’re providing it to them.

01:26 Speaker B

The other thing that’s come up more recently that we’re seeing from retail investors is a renewed interest in fixed income.

01:34 Speaker A

Really?

01:35 Speaker B

Yeah, believe it or not, bonds are

01:38 Speaker A

The retail investor wants fixed income?

01:39 Speaker B

Bonds are cool again. Yeah, well what’s happened is with money fund yields coming down, investors are asking, hey, should we be in a bond strategy that has a little bit more duration to it so that we don’t run into this reinvestment risk issue. So, uh we are seeing bonds be of more interest to investors.

01:56 Speaker A

I have to ask Liz Ann Saunders more about bonds.

01:59 Speaker B

Yeah, ask Liz Ann.

02:00 Speaker A

She is always on. I don’t ask her enough about bonds. What are you telling them though? How do how do they invest in bonds?

02:04 Speaker B

Well, there’s lots of ways to get invested in bonds and we we do tell them now is a reasonable time to think about moving from a money fund to a to a bond-oriented fund and they can invest directly in bonds on our platform. They can buy an ETF. Uh we have managed accounts where we can customize a bond portfolio to their needs. So investors are finding plenty of ways on our platform to be invested in bonds and

02:25 Speaker B

but it’s nice to see the interest.