Change is the one constant in the financial services industry. In 1970, there were many days where trading volume on the New York Stock Exchange did not exceed 10 million shares. Recently, there have been multiple days with over 5 billion shares traded, an increase of 500 times. We have seen the development of integrated money market accounts, explosive growth in mutual funds, and the proliferation of such instruments as exchange-traded funds, separately managed accounts, hedge funds, private equity, structured products, and managed futures for commodities. This is taking place not just in the United States but across the world.
With time, advice has evolved as well. It had to. Clients have more investment choices than ever before. The global economy has become more interconnected and global capital markets have gone through explosive growth in both size and depth. The financial services industry has listened to the demands of its clients and responded accordingly. Investors today have the opportunity to invest in more asset classes through more vehicles in more places around the world than ever before.
So, where do we go from here? I had the opportunity to visit with Tom Anderson while he was putting together this book and he pointed out a glaring omission that I believe holds true for most all of us: throughout his primary school years, college education, graduate school, and professional life, Tom had not been educated as to the virtues of correctly structured debt. ...