Optimism watch: The case for maximum pessimism

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Is the stock market getting you down? I’m starting an “Optimism watch” on this blog. 

In “Optimism watch” posts, I’ll highlight the case that other writers make for you and your clients to hang in there.

Let’s start with a quote from “Nowhere to Hide: Foreign Funds are Falling, Too,” from Morningstar’s Bridget Hughes.

…before you fall into deep despair, I’d remind you that the late Sir John Templeton made a highly successful career investing where he saw “maximum pessimism.” We’ve been here before. Markets are cyclical. Keeping a truly long-term perspective (10 years or more) can be liberating, and you may realize this is a time to add to your holdings.

Related posts on the Investment Writing blog:

"Can not" vs. "cannot"

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Which is right? “Can not” or “cannot”?

Habit tells me “cannot,” but I can’t find this peculiar spelling in the index of any of my style guides.

However, Wikipedia gives me this quote, in which I’ve added the bolding to “cannot”:
In this regard, the following quotation from The Chicago Manual of Style deserves notice:

Rules and regulations such as these, in the nature of the case, cannotbe endowed with the fixity of rock-ribbed law. They are meant for theaverage case, and must be applied with a certain degree of elasticity.

I haven’t thought about this issue in years. I usually work around it by using “can’t.”

What’s your practice?

This is a reposting of one of the most popular posts on one of my predecessor blogs. I originally posted it in April 2006.

ACLI promises better disclosures about annuities

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The American Council of Life Insurers (ACLI) is promising to improve disclosure about annuities in cooperation with the National Association for Variable Annuities (NAVA), according to “User-Friendly Annuity Documents Planned,” an article on the Financial Advisor website.

Maybe they could start with the so-called “easy to read tip sheet” for seniors on their website. It sports plenty of jargon. Like “current credited interest rate”–a term that I couldn’t even find in the ACLI’s glossary. The same goes for “subaccount.”

The ACLI and NAVA are tackling a tough job. I wish them good luck.

How I ghostwrite your financial article

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Too busy to write an article? Hiring a ghostwriter is a great way to produce a compelling article in a short amount of time.

Ghostwriting is one of my specialties. Please read on for an explanation of how you and I can work together.

My ghostwriting process typically includes these steps:
1. Topic identification
2. Interview of expert(s)
3. Outline
4. First draft
5. Revision, if necessary
6. Completion

1. Topic identification

You and I will discuss your topic over the phone. It’s helpful if you can answer these questions:
•    Why do you want to write an article and what do you want it to accomplish?
•    What is your topic?
•    Who is your audience and what do you want them to do after they read your article?
•    Why will your readers care about your article topic?
•    What problem will your article solve for your readers?
•    What are the three main points you’d like to make?
•    Where will the article appear?
•    What word count are you targeting? For example, a ghostwritten newspaper article often runs 600-1,000 words and a double-spaced, typed page runs about 200-250 words.
•    By when do you need the article completed?
•    What is your review and approval process?

Following this interview, I typically send you a letter of agreement that describes the scope of the work we will do together.

2. Interview of expert(s)

Most of the articles that I ghostwrite are based on an interview with a single expert. Sometimes multiple experts and outside research are involved.

Prior to the interview, I will send you a list of questions to think about. If that makes you think of useful exhibits or other data, it’s helpful for you to send them to me prior to our interview.

The interview will be conducted by phone and tape recorded, so I can refer back to it.

3. Outline

Following our interview, I will typically send you a robust outline, so you can agree to the direction of the article before I send you a complete draft. The outline will incorporate my questions and requests for additional information needed to flesh out the article.

4. First draft

After you respond to my questions and approve the outline, I will send you an article following the outline.

5. Revisions

My clients are often satisfied with my initial draft. However, sometimes changes are needed. Our letter of agreement will specify the scope of revisions included in your project fee.

6. Completion

When the process is complete, you’ve got an article you can publish under your name. It’s ready to go!

 

"You Can Write – Six easy tips to getting words from your head to your computer keyboard"

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Financial advisors need to write to their clients. It’s an essential part of marketing. “Phone conversations are fleeting and cannot be handed as a referral to a friend in the same way that a piece of written material can be passed on,” as PR consultant Beth Chapman of Ink & Air points out in “You Can Write – Six easy tips to getting words from your head to your computer keyboard,” her article below.


Forget your old issues with writing, this is a new day and this is business.

  1. Ever hear of an outline? Outlines can take away some of your uncertainty when you do realize you have something to say.
  2. No one really likes grammar, so write short sentences and avoid all internal punctuation that you can.
  3. Have someone else read your document after you have gone through spell check. Often a word can be spelled correctly, but be the wrong word for the context. Familiarity breeds written errors.  That second set of eyes is extremely useful.
  4. Write in bullet points instead of sentences and paragraphs, where transitions are not needed. This engages the reader’s eyes better than run on sentences.
  5. Writing can be done if you tackle it when you are the freshest and work for only 10 minutes a day for several days. Outline and get the ideas down and then polish.
  6. Phone conversations are fleeting and cannot be handed as a referral to a friend in the same way that a piece of written material can be passed on.

Can you help your clients to control their fears?

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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.

 

How to boost your website’s rank in Internet searches

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Use keywords well and you boost the odds that potential clients will find you in their Internet searches.

“Fifteen places you must place your Keyword Phrase and the why behind it” provides some helpful hints. At a minimum, make sure the person putting up your website knows the “behind the scenes” tricks for placing keywords. 

Tread more carefully when it comes to inserting keywords into your text. Excessive use of keywords can make your writing clunky. It can drive away the very people you want to attract.

What Jason Zweig does right–and wrong–in his inaugural column

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“Stop Worrying, and Learn to Love the Bear.”

I love the title of Jason Zweig’s inaugural “The Intelligent Investor” column for The Wall Street Journal. With this title, Zweig follows advice I give to writers of investment commentary. He takes something that’s viewed as negative and finds the positive side. That’s a great way to grab your reader’s attention.

Zweig says, “…if you are still in your saving and investing years, a bear market is a gift from the financial gods — and the longer it lasts, the better off you will be. Instead of running from the bear, you should embrace him.” So that’s his thesis. 

But Zweig falls short in explaining how the bear market will help investors, other than offering the opportunity to buy good stocks cheaply. He gives the example of how the last long bear market—1969-1982—set the stage for stocks to return 18.5% a year for the 18 years following the bear market’s end.

Let’s assume—and it’s a big assumption—that scenario will repeat. Then, sure, folks who are just starting their saving and investing would end up better off. But what about those who are in the midst of their saving and investing? Will they ever make up their losses?

Website demystifies confusing words

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NOTE: The Confusing Words website no longer exists. 

Try searching  the Common Errors in English Usage website. Or, search in Google for the confusing pair, for example, “capitol vs. capital” to check if you’re right.

The Confusing Words website clarifies the differences between sets of two or more frequently confused words. Visit it when you’re confused about which word to use.

According to the website, some classic pairs of misunderstood or misused words include:

  • Affect vs. effect
  • Capitol vs. capital
  •  Affluent vs. effluent — I’ll bet there aren’t any financial advisors who make this mistake!
  • Atheist vs. agnostic

I read about this in Daphne Gray-Grant’s Power Writing e-newsletter.

April 9, 2013 update: Common Errors in English Usage covers some similar information. Thanks, @Blano, for bringing it to my attention!

March 23, 2018: I updated this post to reflect the disappearance of the Confusing Words website.

 

"Should you use quotes like PIMCO’s Bill Gross?"

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If you don’t subscribe to my e-newsletter, you missed “Should you use quotes like PIMCO’s Bill Gross?” 

This article appeared exclusively in my e-newsletter and provided advice on how to use one of Gross’ investment commentary techniques.