Tackling Industry Trends and Taking a Holistic Approach, with Marlena Lee of Dimensional Fund Advisors

“On the Circuit” is a podcast where conversation sparks innovation, hosted by Johnny Sandquist from Three Crowns Marketing. This season, his guests include industry conference attendees from across the country.

Marlena Lee has the 411 on investment trends. 

Does AI have staying power in the investment industry? What’s a positive trend advisors should implement? How do you navigate client conversations about fads?

As Global Head of Investment Solutions at Dimensional Fund Advisors, Marlena may not have all the answers, but she’s got some pretty good ideas. Here’s what she has to say about two of the most popular trends in the industry today:

1. Here to play: Artificial Intelligence (AI)

“Everyone’s clamoring to get on the [AI] train but there’s real world implications to it,” Marlena said. “But then I think the investment implications are far more limited.”

Using artificial intelligence to boost productivity? Marlena gives two thumbs up to that. Using artificial intelligence to select stocks? Two thumbs way down. She recommends relying on market aggregate intelligence to inform investing decisions.

2. Here to stay: Holistic planning

Wealth and health are intertwined. “There’s no silver bullet, there’s no magic,” Marlena said.

“When it comes to health, it’s usually the basics,” she continued. “It’s diet, exercise, and sleep, and it is having a kind of routine about it. Same thing with wealth, [it’s] having a financial plan and not hoping for a magic bullet, but slowly letting that compounding help get [some]one to their long-term goals.”

Marlena and her team at Dimensional Fund Advisors focus on taking a holistic approach and she recommends advisors implement this trend in their practice. 

What about future trends? The best way advisors can prepare for the unknown is to incorporate a framework to think through past and future trends. This can help advisors decipher the longevity and implications of trends, long before clients come to them with questions.

Marlena dives deeper into AI and holistic planning on episode 33 of “On the Circuit” with host Johnny Sandquist of Three Crowns Marketing. 

Click “play” above to listen to the full episode. To hear from more industry friends and experts, subscribe to “On the Circuit” wherever you listen to podcasts. 

Key Takeaways

1. While there are thematic ETFs that will let you invest in any kind of niche of the market, start with diversification. 
2. There’s no silver bullet to success – rather a holistic approach built on routine & consistency will generate long-term wealth for clients.  
3. Belonging to local community groups can help advisors create a stronger investment experience for their clients.

Key Timestamps and Topics

• 00:01:21 – Marlena Lee dishes on AI’s future in portfolio investing and defines the difference between aggregate intelligence and artificial intelligence
• 00:04:27 – To AI or not to AI, that is the question a lot of clients are bringing to their advisors. How should advisors approach AI-centric conversations?
• 00:05:48 – Marlena and her team at Dimensional strive for a holistic approach to wealth management. Health is wealth, and Marlena says wealth or peace of mind is health.
• 00:08:06 – Belonging to local community groups can help advisors create a stronger investment experience for their clients.

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