J.P. Morgan Securities’ Colleen O’Callaghan is taking steps to protect portfolios from an economic setback.
O’Callaghan warns the domino effect from coronavirus aid gridlock on Capitol Hill is the biggest risk facing Wall Street right now.
As a result, she’s increasing cash exposure for her ultra-high net worth clients.
“What we’ve been working to do is to reduce some of that equity exposure — sit in cash perhaps for a little bit,” the firm’s managing director and financial advisor told CNBC’s “Trading Nation” on Thursday.
O’Callaghan, who manages more than $3 billion in assets, is one of Barron’s top 20 women financial advisors and is on one of the nation’s top 50 private wealth management teams.
As a long-term investor, O’Callaghan’s goal is to tune out the day-to-day headlines and volatility in the market. But she acknowledges the elephant in the room right now is the stimulus, or lack thereof.