ThinkAdvisor hears from the advisor and the quant: Using a Market Correction to Build Client Trust

Katie Godbout, Director of Sales & Marketing
March 5, 2018
    

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In an ongoing series exclusive to ThinkAdvisor, Joe Elsasser, CFP® and Ron Piccinini, PhD provide readers with two distinct perspectives on the same topic – one from an academic, the other from a practicing financial advisor. The most recent installment was published today, "The Advisor and the Quant: Using a Market Correction to Build Client Trust." In this edition, we asked both Joe and Ron to discuss how to help clients deal with market volatility.

Joe's response included:

Ultimately, market volatility is the reason for a financial plan. When an advisor and client have developed a financial plan in advance, the discussion can remain focused the client’s ability to meet their financial goals, preventing the greed/panic cycle that causes most investors to underperform the market as a whole.

 

And Ron's response included:

Advisors who will truly shine through the process will have already set realistic downside expectations with their clients, when times were good. Now that volatility has kicked in, it is a great time to dig up the report showing how much downside your clients signed up for, as well as their risk tolerance questionnaire. For example, if a client indicated that they would be OK with losses of 10% in a quarter, and their portfolio is up (or down) 5% for the quarter, it will give them confidence in your investment strategy.

 

See the rest of what Joe and Ron said in the full article from ThinkAdvisor here

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Posted by Katie Godbout, Director of Sales & Marketing
Katie thrives on making an impact and achieving big goals. She believes that communication strategy has a major impact on business success. As a strategic communicator with a diverse background in non-profit, B2B, healthcare, and SaaS, Katie combines her expertise in strategy development, marketing and sales to spread the word about how Covisum can help advisors and institutions inform their clients of the best financial decisions.