How to Deal with Clients Beset by Anxiety, Fear or Greed

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Does this scenario seem familiar?

A client calls. He’s upset about his performance and is having difficulty dealing with the “stomach-churning” volatility of the market. He wants to “flee to safety” until “things settle down.”

You are well-prepared to deal with this issue. You know the long-term data and the merit of ignoring short-term noise.

You attempt to put his concerns in perspective by explaining how the market “smooths out” the longer you look at returns.

Your data is overwhelming, but it doesn’t convince him. He says he will think about what you said but leaves as agitated as when he arrived.

What happened?