This is an extraordinary time. As advisors, you are a port in the storm forworried clients, confronting a double whammy of an economic meltdown and acredible threat to their health. Many ofyour clients are retired, placing them at greater risk of complications fromCovid-19.
You’re unlikely to confront a more challenging confluenceof events in your lifetime.
Here’s the good news: You’ve trained for this moment your entire professional life.
The pundits may say you’re highly stressed and needextensive assistance. I don’t agree.
When Tiger Woods steps up to the tee, he doesn’t ask hiscoach what to do next. He spentthousands of hours practicing for this moment.
So have you.
As an evidence-based advisor, you structured theportfolios of your clients to anticipate market meltdowns.
Your clients likely have a sufficient allocation toshort-term bonds so they won’t have to sell stocks in a down market. You previously told them not to take any morerisk than necessary. They are reapingthe benefit of your sage counsel.
This preparation makes it easier to explain why “stickingto our plan” makes sense.
One advisor told his clients: We planned for this, in an unemotionalway, a long time ago. We are preparedand ready. So are you.
That’s a comforting message.
There’s a lot we don’t know about Covid-19, like how manyAmericans will be infected, how many will suffer complications and possiblydie, whether the health care system can withstand the burden, whether we willhave the equipment to treat the sick, and when a vaccine or an effectivetreatment will be available.
Just like the market dislikes uncertainty, so do yourclients. It increases their anxiety andstress.
Unfortunately, the media plays up the negatives, because that is what keeps eyeballs on their networks.
Here’s a valuable role you can play: Provide a balanced view of the crisis. Here are some examples:
There’s reason to believe, if we follow therecommendations of the CDC and engage in similar social distancing practices,the present of these countries will be our future.
Consider applying your research skills to getting thelatest updates on Covid-19 from credible sources like the CDC and the WorldHealth Organization in order to convey all relevant information to yourclients.
They’re unlikely to get it elsewhere.
I recommend this article which cautions against overreacting to thecurrent crisis.