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

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!

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