By Kenneth Corbin

John Davi looks prescient for having predicted a "big, fat correction" for U.S. large-cap stocks earlier this year. Davi, the founder and CIO of Astoria Portfolio Advisors, an asset manager serving small financial advisory firms, sees the Trump administration's tariffs as the catalyst that sparked a correction that was coming one way or another. He thinks stocks still haven't bottomed out and is now overweight high-quality bonds such as Treasuries and corporates. For advisors, he recommends diversification and taking refuge in dividend-paying stocks, saying that "this is the year to play defense."

Among other most-read wealth management articles this week:

LPL's retention challenge . For LPL Financial, reaching terms to acquire Commonwealth Financial Network, a smaller rival, might have been the easy part. Now, LPL must work to convince Commonwealth's roughly 2,900 independent advisors to join its platform. LPL is offering retention bonuses and assurances that advisors won't see disruptions in their service model or workplace culture, but rival firms are ready to pounce with recruiting offers of their own. LPL isn't new to the challenge, however, as it has made numerous recent acquisitions of wealth management firms and honed its retention pitch in the process.

Interactive Brokers falls short . Interactive Brokers this week posted first-quarter earnings that failed to meet the consensus forecast of Wall Street analysts. At the same time, the company increased its cash dividend and announced a four-for-one forward split of its common stock, set to take effect June 18. The company says it has been hunting for potential acquisition targets, though CEO Milan Galik acknowledged that process has been challenging. It was a busy quarter for customers of the Greenwich, Conn.-based company, which in the first quarter saw double-digit annual increases in trading of stocks, options, and futures.

How advisors talk tariffs . The extreme market volatility that has resulted from President Donald Trump's tariff policy has put advisors in a tough spot. Clients, who may have been expecting a smooth, steady uptick in markets under a second Trump presidency, instead have been seeing share prices whipsaw. Advisors we canvassed for this week's Big Q feature say they are telling clients that volatility will endure and that stagflation remains a concern. But they are reassuring clients that "we've been here before" and suggesting they diversify portfolios with international holdings.

Schwab's record quarter . Charles Schwab reported strong growth in net new assets in the first quarter and topped Wall Street analysts' expectations with earnings per share of $1.04 and record revenue of $5.6 billion. Schwab also seemed to shrug off the market turmoil that has followed the Trump administration's shifting tariff policies, saying it is comfortable with its existing earnings guidance, but acknowledging that it will continue monitoring developments. It says it will offer a more "comprehensive update" when it next reports earnings in the summer.

Looking beyond Bitcoin . Clients don't need to be keen students of Washington affairs to know that the new administration has taken a decidedly friendlier stance toward cryptocurrency than its predecessor. New filings for crypto exchange-traded funds are piling up as Congress considers legislation to accommodate the asset class and as the White House touts a Bitcoin strategic reserve. Diversifying crypto holdings can help clients manage risk and volatility, our guest columnist writes, suggesting that the U.S. is "at the cusp" of a new phase in crypto that will be marked by more diverse investment vehicles.

Write to advisor.editors@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 18, 2025 12:29 ET (16:29 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.