/ by Don Connelly / Investing Wisdom / 0 comments
Unquestionably, the stock market has experienced extreme volatility in the last couple of years, elevating the anxiety levels of investors who grew complacent throughout a historic 11-year bull market. Just as they did throughout the wild gyrations of the 2008-2011 market, investors have grown intolerant of the recent, wild stock market gyrations, resulting in many choosing to make wholesale changes to their portfolio, switch financial advisors, or flee the market entirely.
But, what investors may not understand is that switching between asset classes to avoid volatility can actually have the opposite effect. It is incumbent upon financial advisors to help their clients understand that, with a sound investment strategy and a long-term perspective, volatility can actually be good for a stock portfolio because it has always been the primary force that drives market gains over time.
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Financial Advisor Do’s and Don’ts During Extreme Market Volatility
/ by Don Connelly / Investing Wisdom / 0 comments
Financial advisors play a vital role in helping clients achieve their most important financial goals. But where they really earn their fees is during times like these, when helping clients navigate the choppy waters of extreme market volatility. Clients look to their advisors to guide them through scary times and reassure them that everything will be okay.
Emotions run high when the market turns volatile. When stressed, humans instinctively want to do something and take some kind of action to reduce or eliminate the threat. That’s when mistakes typically occur. The value of a financial advisor rises in direct proportion to the anxiety levels of their clients, who look at volatile market swings as a threat to their financial security. The critical role of financial advisors is to keep their clients from making costly behavioral mistakes. During periods of extreme market volatility, there are some things advisors must do and things they should avoid doing to maximize their value to their clients. Here are a few.
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Educate Clients about Market Volatility so They Can Confidently Stick to the Plan
/ by Diana Marinova / Best Practices, Connelly Corner / 0 comments
Happy New Year from all of us at Don Connelly & Associates! Hopefully everyone will enjoy good health during the new year, achieving great success both personally and professionally.
As promised, this week we’re posting the second part of the recap blog post, covering two more popular topics our community of Advisors was most interested in during 2020 – market volatility and how to communicate with prospects and clients about it. We’ll also share a few stories and analogies you can use to convince clients to stick to the plan, no matter the market conditions.
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How to Assure Clients That Volatility Is Part of the Strategy
/ by Don Connelly / Investing Wisdom / 0 comments
Unquestionably, the stock market has experienced extreme volatility in the last couple of years, elevating the anxiety levels of investors who grew complacent throughout a historic 11-year bull market. Just as they did throughout the wild gyrations of the 2008-2011 market, investors have grown intolerant of the recent, wild stock market gyrations, resulting in many choosing to make wholesale changes to their portfolio, switch financial advisors, or flee the market entirely.
But, what investors may not understand is that switching between asset classes to avoid volatility can actually have the opposite effect. It is incumbent upon financial advisors to help their clients understand that, with a sound investment strategy and a long-term perspective, volatility can actually be good for a stock portfolio because it has always been the primary force that drives market gains over time.
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Making Sure You Make the Most of Market Uncertainty – What Advisors Read the Most on the Blog
/ by Diana Marinova / Connelly Corner, Investing Wisdom / 0 comments
As you very well remember, we had a quick and severe market downturn in March and April 2020, followed by the greatest stock market rally in the history of the stock markets. Naturally, clients are panicked because of the market uncertainty. Regardless of where the DJIA closes today, we know for a fact that there will be another bear market – we just don’t know when.
To help you prepare yourself and your clients for what inevitably lies ahead, we bring you the top 10 most-read posts on the topic of market volatility, falling markets and growing your business in a post-pandemic world.
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4 Misconceptions about Market Volatility Your Clients Need to Be Aware of
/ by Don Connelly / Investing Wisdom / 0 comments
As a financial advisor it’s your responsibility to get your clients to stick to their financial plan for the long term. This means you’ll need to change any pre-conceived notions they may have about market volatility. In particular, you need to get across that volatility does not equate to risk or loss.
Here are some common misconceptions about market volatility your clients may have and how to address them.
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