Can you help your clients to control their fears?
The Intelligent Investor’s column on “How to Control Your Fears in a Fearsome Market” inspired this blog post.
Author Jason Zweig lists four techniques that individuals can use to manage the stress they feel when the market tanks. You might be able to apply some of them in your conversations with clients.
For example, consider his advice to reappraise.
Forget what you paid for that stock or fund; instead, imagine it was a gift. Now that it is priced, say, 20% more cheaply than in December, should you want to return the gift? Or should you buy more while it is on sale? (If rethinking a fallen price this way doesn’t make you feel better, maybe you should sell.)
I think that you could talk your clients through a reappraisal following Zweig’s advice.
It might not work for every client. But you–and your client–will feel good when you success.
Have you ever tried this? Leave your comments below.