Can Edward Jones take advantage of the recent crisis in the brokerage business? When the market is suffering from a crisis, the investor confidence will be seriously hit. It is no doubt a shock for the brokerage industry but still an opportunity for Edward Jones. Edward Jones believes the end consumer is the only client of the company and every client is to be treated equally and afforded the same high ethical standards and access to services. This strategy is quite different from the other traditional brokerage companies such as Merrill Lynch which believes the company should focus on the high value customers. When the crisis occurs, the aggressive people who always take suggestions from the advisor will suffer a larger loss because of excessive trading. Some people will realize that the real reason for such loss is they were misled by the broker for the purpose of increasing commission. They will be tend to change their brokerage company and find the one which is really care about what they want and capable to provide suitable financial plan. Edward Jones own a powerful FA function and designed to deliver value to the clients. The financial planners are well trained and they will do the necessary investigation to know what the customer need before providing a suitable financial plan for asset allocation. Profession and responsibility help the company become the number one in the client satisfaction investigation. As a result, clients of Edward Jones would suffer a relatively slight loss during the crisis for the reasonable asset allocation not just like others put most money in the risky derivatives such as CDS. And in the long term, the belief of “serve for the client” will attract more clients and finally profit the company.
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