Your clients are calling wondering exactly what the future holds for their portfolios. With a correction underway you as an advisor have an opportunity to earn your keep.
As they say in professional sports – “it’s game time.”
U.S. advisor Greg Friedman of Private Ocean, a California-based registered investment advisor with 25 years’ experience sent an email to clients in recent days highlighting the inexorable truths of investing.
“It is in times like these that it is important to stay calm and refrain from making decisions that may be detrimental to your wealth,” wrote Friedman in his email to clients. “In the meantime, our dedicated investment operations team will monitor for rebalancing opportunities that may add value to your portfolio.”
For Friedman market volatility is part of the bargain that delivers market-beating returns. It’s the nature of the beast. Ideally positioned to meet times like the present, he won’t be making any changes to client portfolios.
“Stay the course” is his motto and clients are okay with that.
Here in Canada experienced advisors are doing the same.
“As for these turbulent markets, we are navigating them quite well as we utilize multiple asset classes from both the public and private marketplaces,” wrote Arthur Salzer
, CEO of Northland Wealth Management
in an email to WP. “Truth be told, we have had only couple of phone calls about current market conditions as portfolios are doing what they are designed to do, which is provide a ‘sleep at night factor’ along with meeting a family’s needs and objectives.”
Salzer’s ability to provide peace of mind begins by having conversations with clients about how the markets work, the volatility that exists, and the ultimate goal of the portfolio’s assets. Held together by the investment policy statement, when tough times hit they’re more than prepared for corrections like the one that just hit global markets.
Ottawa advisor Bob Roby is much simpler in his approach but no less successful.
“As I predicted in my blog two weeks ago, what we are seeing is a market correction after a few years of record making stock market increases,” wrote Roby in his blog August 24. “Not only is a stock market correction normal, but I welcome it as an opportunity to build additional wealth for you [client] with the re-investment of your dividends, monthly contributions and new funds.”
“Whether its stocks or socks everyone loves to buy things on sale
,” Roby quoted Warren Buffett.