Are you getting a lot of phone calls?
Global reactions to China’s economic slowdown and ever-dropping oil prices can scare even the most stalwart investors. Help clients understand that recent market volatility has been driven partly by the strengthening American dollar and the wind-down of that country’s monetary stimulus policy.
We’ve been in rough spots before, and while volatile markets can turn into a full-blown crash, it doesn’t always happen. While that may be cold comfort, it’s also no excuse to start pulling the trigger.
It’s a hard lesson to teach clients who are worried about their retirement plans. But remind them that neither they, nor you, are at fault. You’ve collaborated to build a solid financial plan, and your client dutifully funded it.
Here are some timeless articles to help you calm those panicking clients:
Advisors must guard against reckless action, even though current conditions are starting to remind some investors of the dark days of the financial crisis.
When your clients look at their next portfolio statements, the numbers might not be pretty. And even though they’ve heard a recent litany of bad news, when they open those envelopes, the reality of the declines will hit home.
When markets get bumpy, don’t exaggerate successes or gloss over mistakes.
Advisor-client relationships must weather mistakes, market crashes and miscommunication.
It may seem out of touch to consider working on your business at a time like this, but strategic planning is exactly what you need right now to help you re-energize your firm and grow your book.
One way to generate returns is to dip into three investment buckets, each of which uses a different strategy.
If you can’t count on the market for returns, you can at least generate tax alpha for clients.
Volatile markets mean clients are looking for hedging strategies. Investors rarely adopt that attitude, so take advantage of it now.
Shaky indexes notwithstanding, the markets are still at relative peaks compared with recent years. Take a look at some ways newer investors can get a seat at the table.
Despite a well-publicized shift to passive vehicles over the past few years, volatility will spur more investors to actively chase returns.
To get the right conversations started with your clients, here are some ready-to-go articles to send them from Advisor To Client: