Top
You may be familiar with our Four C's of Client Communication in Turbulent Markets: candor, clarity, commitment and calm. However, my long-held view of the importance of our four C's may be missing something very significant: Context.
With the S&P 500® and the Dow chalking up to an ugly week on September 6, how can you provide clients context for what it means about their portfolios? In three important ways:
- None of you clients likely own the S&P 500® or the Dow itself. If you've brought a diversified approach to their portfolios, their personal downdraft may be a far smaller percentage.
- Look at the charts for market performance to see how many days of an upmarket have been retraced. It's a really good way to keep context in check.
- Articulate your thesis—a timely, pithy sound bite that connects the dots to the advice you're delivering.
We turned to the September issue of The BEAT for thesis inspiration: Today's volatility is about unwinding crowded positions not unwinding fundamentals. According to Jim Caron, CIO of the Portfolio Solutions Group:
"Today's market volatility is tomorrow's opportunity as weakness in September is typically followed by strength in the months that follow."
Providing sound counsel and context can help alleviate your clients' fears, despite the headlines surrounding today's market volatility.
Bottom line: Clients are looking for some perspective from you right now. Add "context" as the fifth C to your client communications approach in the weeks ahead.
Providing sound counsel and context can help alleviate your clients' fears, despite the headlines surrounding today's market volatility.
Featured Insights
At the Advisor Institute, our goal is not to shape your opinion or provide investment advice, rather to share this viewpoint as an example of what we believe to be a superb display of thesis articulation.
The views and opinions and/or analysis expressed are those of the author or the investment team as of the date of preparation of this material and are subject to change at any time without notice due to market or economic conditions and may not necessarily come to pass. Furthermore, the views will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring, after the date of publication. The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) and its subsidiaries and affiliates (collectively “the Firm”), and may not be reflected in all the strategies and products that the Firm offers.
Forecasts and/or estimates provided herein are subject to change and may not actually come to pass. Information regarding expected market returns and market outlooks is based on the research, analysis and opinions of the authors or the investment team. These conclusions are speculative in nature, may not come to pass and are not intended to predict the future performance of any specific strategy or product the Firm offers. Future results may differ significantly depending on factors such as changes in securities or financial markets or general economic conditions.
This material has been prepared on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. However, no assurances are provided regarding the reliability of such information and the Firm has not sought to independently verify information taken from public and third-party sources.
This material is a general communication, which is not impartial and all information provided has been prepared solely for informational and educational purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.
Charts and graphs provided herein are for illustrative purposes only. Past performance is no guarantee of future results. The indexes are unmanaged and do not include any expenses, fees or sales charges. It is not possible to invest directly in an index. Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor. Any product based on an index is in no way sponsored, endorsed, sold or promoted by the applicable licensor and it shall not have any liability with respect thereto.
This image indicates content designed specifically for Financial Advisors / Investment Professionals. This material is not to be used with the public.