As interest rates continue to rise, inflation lingers and a recession has either started already or is expected to come soon, investors continue to be concerned about the market downturn and advisors should be attempting to ease the concerns of their clients, according to Samantha Russell, chief evangelist at FMG Suite and Twenty Over Ten.
1. Put ‘this time’ into historical context.
It is crucial that clients understand what has happened in the past when there have been similar downturns, Russell said.
Therefore, she urged advisors to place "this time" into historical context. After all, she added: "Every single bear market has been followed by a bull market."
2. Don’t try to time the market.
Advisors should stress to their clients that trying to time the market is doomed to fail, she said.
Therefore, it's important for advisors to show their clients what could happen if they do that.
Advisors should let their clients see "how large the missed opportunity can be for investors trying to get in and out at just the right time," Russell said.
3. Help clients remember why they hired you.
This is the perfect time to remind clients why they decided to hire you in the first place instead of a different advisor, according to Russell.
