/ by Don Connelly / Storytelling, analogies and power phrases / 0 comments
Obviously, the stock market’s volatile and you’re going to encounter volatility your entire career. It’s the normal part of the market. Even though volatility is normal, it makes clients very nervous. Fear is a bigger emotion than greed.
One of the challenges for you in volatile markets is that clients can slip into a behavior called anchoring. When clients give you a specific amount of money, that becomes the anchor amount of their portfolio. They refer back to that initial amount when evaluating any ups and down in value. Let’s say hypothetically that a $100,000 portfolio falls in value to $90.000. Right away, they think to themselves, “Oh, it’s broken.” Something’s wrong.”
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The Hidden Challenges Financial Advisors Face during Market Volatility
/ by Don Connelly / Best Practices / 0 comments
If you haven’t experienced it, you’ve probably seen it—a sudden 10% plunge in the S&P500 over 48 hours, a gut-punch drop that sends headlines screaming and client inboxes buzzing. But what really goes through a financial advisor’s mind when markets turn chaotic?
Beyond the dizzying charts and numbers, sudden extreme volatility exposes a gauntlet of challenges—some client-driven, some self-inflicted—that test even the most seasoned professionals. Here’s a deep dive into the five biggest challenges Financial Advisors face during market volatility, and how to navigate them.
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Three Analogies to Use in Volatile Markets
/ by Don Connelly / Storytelling, analogies and power phrases / 0 comments
Obviously, the stock market’s volatile and you’re going to encounter volatility your entire career. It’s the normal part of the market. Even though volatility is normal, it makes clients very nervous. Fear is a bigger emotion than greed.
One of the challenges for you in volatile markets is that clients can slip into a behavior called anchoring. When clients give you a specific amount of money, that becomes the anchor amount of their portfolio. They refer back to that initial amount when evaluating any ups and down in value. Let’s say hypothetically that a $100,000 portfolio falls in value to $90.000. Right away, they think to themselves, “Oh, it’s broken.” Something’s wrong.”
Read more