Keeping clients on their path

Make sure clients keep their eye on the long view, and not let emotions pull them off course

The emotions of investing have always fascinated me.

This fascination began in the 2000s when I was working at TheStreet and had the opportunity to observe the distinct difference between Jim Cramer and Herb Greenberg. Both brilliant market observers, they couldn’t have been more different. Impassioned understates Jim, while Herb maintained a cool detachment. But each remained true to his style and investing path through a variety of circumstances.

I thought of this on Thursday night, as I read up on the various economic reports released this week, none of which were heartening. When the pandemic hit the markets, the unanimous response among our community of sources, readers and writers was “stay the course,” communicate with clients and remind them of the long road we’re on together.

It appears that approach was generally successful. Portfolio churn was minimal, and client inquiries seemed to focus as much on opportunity as on fear. However, that was only the first part of the path we’ll be on this year.

This week, we saw negative data nearly every time we opened our inbox. So, please accept this reminder to stay vigilant, in whatever form that takes, and make sure clients keep their eye on the long view, and not let emotions pull them off course.