How Storytelling Builds Trust
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One needn’t look far to find reasons to worry about the markets. With the Fed raising rates by 1.25% over the last two months, interest rate fears – with attendant recession worries – are running rampant among investors. And the markets are pricing in those fears and worries, with dramatic drops of 10% or more in June alone.
During times like these, our clients are looking to their financial advisors to provide calm, reasoned counsel that is based on something other than raw emotion and guessing. Let’s use Dimensional Fund Advisors’ approach to investing as an example. I have no commercial relationship with Dimensional, but its story illustrates how advisors can build trust with their clients through an effective narrative.
Advisors who are part of the Dimensional ecosystem have access to world-class research based on empirical evidence, and that should be of great encouragement to both advisors and their clients. But Dimensional advisors have another great tool in their belts that too often gets overlooked: a really great story to tell.
We never get too old for stories. And especially in the current volatile market, our clients benefit greatly from hearing a story like Dimensional’s – which gets better the longer it continues.