April 8, 2024 / by Don Connelly / Investing Wisdom, Managing the Relationship / 0 comments
Here we are again—another presidential election year. If it’s like the last couple of elections, financial advisors are sure to see some clients wringing their hands over which candidate will win the White House and how that will impact the financial markets and their investments. At the very least, you’re likely to get an earful of some clients’ political viewpoints—which is fine if they don’t try to correlate them with how they should invest their money.
For decades, investors have tried to find some correlation between elections and investment performance, hoping it will foretell how a particular outcome will impact their portfolio so they can adjust their investment strategy appropriately.
Of course, if you search far enough, you might be able to uncover data that supports such a link. But you’re not going to find any that decisively shows a causal relationship or enough of one to warrant serious consideration for changing investment strategies based on election results. Still, some clients have such strong political views that they see a connection in all aspects of their lives, including how they invest their money.
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Should FAs Allow Clients’ Political Opinions to Influence Their Investment Decisions?
April 8, 2024 / by Don Connelly / Investing Wisdom, Managing the Relationship / 0 comments
Here we are again—another presidential election year. If it’s like the last couple of elections, financial advisors are sure to see some clients wringing their hands over which candidate will win the White House and how that will impact the financial markets and their investments. At the very least, you’re likely to get an earful of some clients’ political viewpoints—which is fine if they don’t try to correlate them with how they should invest their money.
For decades, investors have tried to find some correlation between elections and investment performance, hoping it will foretell how a particular outcome will impact their portfolio so they can adjust their investment strategy appropriately.
Of course, if you search far enough, you might be able to uncover data that supports such a link. But you’re not going to find any that decisively shows a causal relationship or enough of one to warrant serious consideration for changing investment strategies based on election results. Still, some clients have such strong political views that they see a connection in all aspects of their lives, including how they invest their money.
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It’s Time to Have Another Conversation with Your Clients About Risk
January 1, 2024 / by Don Connelly / Investing Wisdom / 0 comments
With the stock market setting its sights on new highs, is it time for advisors to have another serious conversation about risk?
With all that is going on across the globe—war in Ukraine and the Middle East, persistent inflation, rising interest rates, a looming recession, and a divided government likely headed to another fiscal cliff—the stock market appears to be climbing a wall of worry. But how long can that go on? When will it end?
As the market nears new highs, that is the question being asked with increasing regularity by market analysts, media pundits, nervous investors, and financial advisors alike. While the question is palpable, the answer is not so obvious.
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Overcoming Information Overload: What Advisors Can Do to Help Their Clients
September 11, 2023 / by Don Connelly / Best Practices / 0 comments
Living in the digital world, with its instantaneous access to information, has made us smarter and more empowered. In many ways, it has leveled the playing field for clients who now have access to much of the same information once only available to investment professionals. Information is so highly valued that it is churned out 24/7, accessible on any number of devices people carry around. For clients especially, this should be a good thing, right?
The barrage of headlines and hype around market events often leads to behavioral mistakes, like following the panicky herd over the cliff during a market selloff or frantically trying to buy into the market after a massive rally. Studies show it is the primary reason why investors consistently underperform the market.
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7 Ways to Manage Client Expectations
November 28, 2016 / by Don Connelly / Managing the Relationship / 0 comments
Managing client expectations is crucial in order to keep your clients invested in you and with their financial plan. Here are a few ways to make sure you deliver on your clients’ expectations both in terms of investment performance and your level of service.
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