In this unprecedented financial climate, rife with uncertainty and fear, enormous pressures mount on advisors and their clients.  We offer our advice for managing the difficult client relationship during today’s complex times.

Our advice is predicated on the assumption that you generally believe in “staying the course” with regard to asset allocations and you are not advocating dramatic changes for your clients’ portfolios – specifically, you are not suggesting that they reduce exposure to equities in a significant way.  If you believe now is the time to take your clients’ money “off the table” – and we do not assert that this would be unwise - then much of our advice does not apply.

Forecasts range from an impending global economic collapse to a market that is now vastly undervalued.  At one extreme, you can read what Nouriel Roubini has to say.  Roubini earned the moniker Dr. Doom for his predictions two years ago of the current crisis, and he is living up to his reputation today.  He says we are at the brink of another Great Depression.  Sadly, he is not alone.  But there are many on other end of the spectrum in terms of sentiment.  Foremost among them is Warren Buffett, whose recent investments in General Electric and Goldman Sachs came after a long period of inactivity in his investing, and express his belief that today represents a terrific buying opportunity.  Our interview this week with Michael Aronstein further illustrates the optimistic line of reasoning.

Display article as PDF for printing.

Would you like to send this article to a friend?