Firm Hopping Peaks At Market Nadir
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Do FAs get itchy to switch firms when the market is bad? The chart below shows that the likelihood of FAs changing firms reached its pinnacle in March, just as the stock market touched its lows and began its dazzling ascent. Indeed, in 2009, more than 22,000 FAs swapped firms (b/ds, independent b/ds and RIAs). Although records haven't been kept for prior years, it's likely that 2009 was a record year for FA firm swapping, say some analysts. Wirehouse executives claim “advisor attrition” will fall in 2010.
