07.05.22
Communicating During a Bear Market
by: BISA Staff
Communication during difficult times — no matter the scenario — is critical. Communicating effectively with clients during a bear market is especially critical for financial advisors. Here's a high-level round up of external articles and a related infographic to help you stay on top of your communication game through the current bear market.
How to Talk to Clients About Market Volatility
By Roger Wohlner, Investopedia
Key Takeaways:
- "As an advisor, there will undoubtedly be times when the markets turn sour and your clients lose money."
- "Market volatility can be hard for clients to reckon with, so it is crucial that you be a good listener and communicator to help them keep their emotions in check."
- "Encouraging clients to stick with their financial plan and to understand that short-term blips will often smooth out over longer time horizons can keep everybody with a level head and reasonable expectations."
- "As markets grow, losses in terms of dollars become less valuable; a $100 drop in the S&P 500 today is a lot different than a $100 drop in the S&P 500 20 years ago on a percentage basis."
- "Good advisors will have mentally prepared their clients for volatility before it happens as well as made sure their client's holdings were appropriate."
Read the Full Article
10 Ways to Talk to Clients in Volatile Markets
By Bryce Sanders, ThinkAdvisor
Example:
"#2 Stocks on Sale. You’ve shared the firm’s opinion. This might be a good time to mention that 'Wall Street seems to be the only place when things go on sale, people aren’t buying.' It’s a platitude, but it should get them thinking."
View All 10 Tips
10 Tips to Keep Clients From Panicking in a Bear Market
By Coryanne Hicks, U.S. News and World Report
Here is a high-level infographic of the 10 tips shared in this article. Read more about each tip in the full article.
