As recently reported in The Wall Street Journal,by Daisy Maxey on July 24, research in Europe found that:
"Investors trading stocks with assistance of financial advisers are
more diversified and overcome some common pitfalls, a new working paper
from European researchers found.
But they are worse off overall
than investors who trade independently, because their stock purchases
underperform, the study says.
The findings suggest advisers “do
not help investors make superior stock purchases,” wrote the
researchers, who examined client transactions at a large, unidentified
There was “consistent evidence” that stock trades
made by investors in conjunction with an adviser underperformed
benchmarks as well as trades investors made independently, the
Moreover, the underperformance was
“particularly severe if the client-advisor contact was initiated by the
adviser, suggesting that advisers actively approach clients with rather
poor trading ideas,” the paper says.