Is Market Panic Causing Advisors To Panic? Not Me And Not My Advisory Firm

Saturday, August 13, 2011 03:37
edit
Is Market Panic Causing Advisors To Panic? Not Me And Not My Advisory Firm

Tags: asset allocation | asset management | client communications | client education | client loyalty | investor behavior | market timing | volatility

Is your phone ringing off the hook? Are emails piling up? Are clients fearful? Do they question why you didn’t move them to cash before the nosedive? I hope that this doesn’t describe your situation. It certainly does not describe mine.

This Website Is For Financial Professionals Only


My clients are not happy with the recent market gyrations, but they have learned to ride out these periods.

 

 

I've proactively kept them informed and calm.

 

What's my secret? It’s no revelation. I’ve simply been consistent with my message.

  • I educate my clients on “Modern Portfolio Theory” beginning the first time we meet.
     
  • I reinforce the “time, not timing” message constantly – in financial plans, newsletters, quarterly reports, seminars, and client meetings.
     
  • I track overall portfolio performance over time and compare it to the S&P 500, showing each client how asset allocation and rebalancing have worked for them in the long run.
     
  • In times of volatility, I communicate – even if it means sending out emails daily!

In response, I receive emails like this one:

“Thank you for reaching out to us on this day of turmoil … By all means we intend to ‘stay the course’... for the record... we are happy with your direction... Keep up the good work!”
 

“Thank you for the email. I know I am just a small player, but it is still a lot to me. I trust you and will go with what you say.”
 

“Thanks for sending this out. We appreciate your perspective. We trust the strategy we have developed with you and will stay with it.”


I don’t mean to imply that I don’t get any concerned phone calls. In the past week, I’ve gotten one or two calls a day – mostly from new clients. They weren’t panicked, just wanted to talk and hear reassuring words. They’re still in training!

Comments (2)

...

 <script language='JavaScript' type='text/javascript'>
 <!--
 var prefix = 'mailto:';
 var suffix = '';
 var attribs = '';
 var path = 'hr' + 'ef' + '=';
 var addy33597 = 'Coach' + '@';
 addy33597 = addy33597 + 'SuccessSkills' + '.' + 'com';
 document.write( '<a ' + path + '\'' + prefix + addy33597 + suffix + '\'' + attribs + '>' );
 document.write( addy33597 );
 document.write( '<\/a>' );
 //-->
 </script><script language='JavaScript' type='text/javascript'>
 <!--
 document.write( '<span style=\'display: none;\'>' );
 //-->
 </script>This e-mail address is being protected from spambots. You need JavaScript enabled to view it
 <script language='JavaScript' type='text/javascript'>
 <!--
 document.write( '</' );
 document.write( 'span>' );
 //-->
 </script>
It's proactive advisors like yourself Sheryl that both retain current clients and pick up ones from FA's who are afraid to respond.
This e-mail address is being protected from spambots. You need JavaScript enabled to view it , August 16, 2011
...
Patricia
If you have educated your clients well, then all it takes is a gentle reminder during periods of turmoil to keep them reassured. I'm having the same experience you are, they just want to hear your words once more as a reminder.
Patricia , August 29, 2011

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy