Jeff Layman last month was named among Barron's top 1,000 advisers. The magazine selected advisers from each state, and Layman was the only one listed from the Springfield area. Layman's total assets under management is $140 million, and his typical client has a net worth of $7.5 million, according to Barron's. He has given financial advice for 16 years - nearly 10 with A.G. Edwards & Sons and the last six years with Morgan Stanley.
Q: What is your reaction to being named to this list?
A: I'm honored. Barron's is a sister publication of the Wall Street Journal, and we read it several times a day. They came to us and said they wanted to look at our business, our compliance, any red flags with clients, quality of customer service, assets under management, everything. What I'm proud of is that they chose 15 advisers in Missouri - eight in St. Louis, six in Kansas City, and I'm the (only Springfield) adviser.
Q: According to Barron's, your typical accounts are valued at $2 million. What is your client base?
A: I manage money for individuals, small businesses, corporations, hospitals, churches, endowments, foundations - it runs the gamut. Our main area of focus is Springfield, but we do business throughout Missouri, and I'm licensed and have clients in 19 states. What we do for people is help them control risk and get the best rate of return they can get. ... Where most people struggle is that they're taking more risk than they realize.
Q: This month, the Dow Jones Industrial Average dropped below 7,000 for the first time in a decade. What's your take on the market?
A: The market is correcting itself similar to what it did in the 1930s - you can't really compare it to anything (else). It's not a normal recession - it's a credit crisis stacked on top of a deep recession, and it's very significant.
Providing assistance in a situation like this is very challenging, but it's also the time my clients need me most. ... You have the down stock market, and then you add the scams, and they don't help anyone; when you have (Bernie Madoff perpetrating) the biggest Ponzi scheme ever, that shakes investment confidence as well.
Q: What role does psychology play in the markets?
A: Psychology is one of the most important aspects. We need confidence. Warren Buffett says, "Be greedy when everyone is fearful, and be fearful when everyone is greedy." The market is very tough in general, because most people buy high and sell low - psychology dictates that when everyone puts money into the market and it's high, they think it's OK to jump in. As long as you have a good long-term game plan, there's never a better time to invest than now at these lows.
Q: Everybody is looking for good investment advice these days. What's yours?
A: You have to make sure your asset allocation and risk tolerance are appropriate. You need to stay focused on the fact that the market is down to what it was in 1997, and there are a lot of good companies that are very, very cheap, so you should buy those. But make sure they're high-quality - don't bother speculating.
And you should give it some time, because it will take a while. The market is different than the economy, which is very confusing for people. The market usually turns around six to nine months before the economy. So people look at the recession and say since we don't think it won't be over until 2010, the market won't recover until 2010. It's usually months before that.Interview by Jeremy Elwood.
This installment of Springfield Business Journal’s Architects & Engineers Project Report showcases 26 endeavors by area design and engineering professionals.
