Case Name :      Rudy Wong, Investment Advisor

Authors :           Stephen R. Foerster, Jimmy Rogers

Source :             Ivey Publishing

Case ID :            910N04

Discipline :        Finance

Case Length :    21 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

With stock markets in major decline, Rudy Wong, an investment adviser for a wealth management firm had to decide how best to reassure each of his clients in upcoming meetings: by communicating logical arguments based on his portfolio management expertise and analysis, or by managing emotions and attempting to re-establish his clients’ faith in the markets. He also needed to re-examine the investment strategy he had developed for each client and recommend that they either “stay the course” with current strategies or make changes. The case allows for a rich discussion of the role of investment advisors, the importance of asset allocation, active versus passive management, investment goal setting, the global financial crisis of 2007-2009, and application of behavioral finance issues such as biases, reliance on heuristics, and framing.