Ask your client if they would be happy with your advice if you based it on a dozen data points. Hopefully they will see quickly that doing so is unwise. The data is inadequate to draw any conclusions. Their rational side understands this. Granted, this election cycle seems to have suppressed rational discourse, but there is value in helping clients try to reengage with that side of themselves and raise their standards for news intake.
I think market timing is folly, so I tend to attract clients that also believe that. Every day, someone in media suggests that a move is critical based on an economic forecast or other prediction like who wins the election. I am firm enough in my belief about market timing (the boatload of evidence helps me think this way) that when the opening to a personal finance column begins with such a suggestion, I stop reading and never think about it again.
In other words, the introduction was not compelling. Clients that do this or learn to do this from our coaching are far more confident in their plans and less stressed by news. They may have election stress for other reasons but not as much about their portfolios.
If you work on being a good student yourself, you may end up a better teacher for your clients.
Dan Moisand, CFP, has been featured as one of America’s top independent financial advisors by Financial Planning, Financial Advisor, Investment Advisor, Investment News, Journal of Financial Planning, Accounting Today, Research, Wealth Manager, and Worth magazines. He practices in Melbourne, Fla. You can reach him at www.moisandfitzgerald.com.