Clients always inevitably ask if this time is "different." It is in that the world has become more globally interconnected, technology has rapidly advanced and our country is facing a potential funding crisis. But in many ways, things are the same as they have always been. Nobody can tell us what is going to happen tomorrow and what new technologies and innovations are being developed for the future. Companies are still driven by a desire to make profits and generate returns for their shareholders. Wars, natural disasters and economic uncertainty are things that have always been inherent in our markets, and although technologies and countries are changing, the primary drivers remain the same.

It is very difficult to make good decisions when there are such large-scale, emotionally charged events. We try to help our clients take the emotional aspect out of the decision and look at the situation with a broader historical and data-driven perspective. Helping people to understand that the markets have gone through episodes of this nature in the past and will go through these types of events in the future is important. It is important to listen to the clients and try to make sure we understand what their "real" concerns are. Sometimes you have to go back to the drawing board and reassess an individual's willingness to take risk in the current market environment and make appropriate changes.

It is critical to help clients understand that investment portfolios consist of many different types of assets, which are combined in a way that will help them mitigate the risks over longer periods of time than the typical television news cycle.

The more we can help clients create a framework to understand and process the overload of data and information that comes their way, the better informed and more comfortable they will be with their decisions and outcomes. 

Garth Scrivner is a Senior Investment Counselor with StanCorp Investment Advisers Inc. in Albuquerque N.M., where he works with retirees and medical professionals. Contact him at [email protected].

First « 1 2 » Next