The study … found that the value of investment advisers was not in the stocks or mutual funds they recommended but in their ability to restrain investors from impulsively trading at the wrong time … data showing that aggressive orders by individuals can cost them about four percentage points a year.
“Enlightened behavioral investors ought to be more willing to pay on the order of one percentage point to an investment manager who will prohibit or at least impede aggressive orders than to pay nearly four times as much for the privilege of excessively and detrimentally trading their own account,” …
… advisers can be subject to the same myopia as the investors they advise. … an article called “The Third Rail” … that questioned the whole notion of advisers being the rational counterweight to investors’ more irrational behavioral tendencies.
Watch this blog. I intend to explore this issue further.