It's been a while since we experienced the level of market volatility that occurred in the first quarter of 2018. But the market's recent volatility gives advisors a new reason to evaluate how their technology performs in periods of turmoil.
The first question to ask is how well has your "dashboard" helped you stay informed during market volatility? Your dashboard might gather information from multiple solutions — such as your rebalancing system, performance reporting system, risk measurement products, financial planning tools and custodian applications — or it also could be sourced from just one or two primary solutions.
The key question is: Do you have efficient access to the information needed to help you better respond to the changing market environment? The information may have led you to stay put and make no changes at all, but your dashboard of information should support your course of action.
Of course, if you don't have a dashboard with easy access to information, you have an improvement opportunity. You can consider new solutions, especially if you have gaps in the list of products mentioned above. Or maybe you already have the right systems but are not using them to their fullest extent.
Bottom line, efficient access to information should not be a challenge in any market environment. You certainly have numerous other items that require your time and attention.
Client Outreach
In today's world of easy access to information, volatility certainly has captured lots of headlines. Many advisors have sent out client communications, offering their perspectives on the market environment.
In reviewing your communications, how are you involving technology solutions? Have you reminded and encouraged clients to review their financial plan, risk tolerance and investment allocation? Have you asked clients to let you know if they have questions or concerns?
