Top
What, not who, is your number one competitor when it comes to attracting new clients? Inertia. And, what drives inertia? Complacency. When people are feeling comfortable, it can be very hard to move them from their status quo.
DIYers riding a small number of big wins might be wondering if it's time to take gains, while investors sitting on the sidelines awaiting the results of the U.S. presidential election are likely frustrated by the soaring markets.
Are they complacent? Hardly. What can you do? Three things:
1. Formulate your thesis. Boil down your view to a pithy soundbite. Looking for inspiration? We turned to the latest Slimmon's TAKE for a thesis from Andrew Slimmon, head of applied equity advisors team: Today's election anxiety creates tomorrow's investment opportunity. Here's what Andrew has to say about it:
In my investing experience, stock price movements diverging highly from fundamentals creates attractive investing opportunities. Elections whip up emotions, and sadly, investors tend to take out those anxieties on their portfolio...
So, let's pull out the Presidential year historical handbook:
- A rally into mid-summer conventions as both candidates promise everything to everybody.
- Followed by a more volatile fall as the uncertainty around the election weighs on investors' psyches. This is where we are, and I suspect this market volatility will last potentially right up to election day.
- However, once the election is over and we have a clear winner in both Congress and the White House, the market tends to do very well into year-end.1
...When the dust settles following the election and investors take a deep breath only to realize the world will not crumble even if their candidate lost, investing then gets back to fundamentals. I think that will be the case again this year. (Slimmon, 2024)
2. Call your clients. Articulate your view and connect the dots to their personal balance sheets. You may not have all the answers, yet your call will be appreciated.
3. Dust off your mushy pipeline. Ask prospective clients how they are doing with these confusing financial markets. Schedule meetings as appropriate.
Bottom line: Your thesis, when well researched and succinctly articulated, can help you get past prospective client inertia.
"Articulate your view and connect the dots to their personal balance sheets. You may not have all the answers, yet your call will be appreciated."
Featured Insights
1. Navellier and Associates. September 10th, 2024.
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.