The Ten Commandments of Client Contact During Volatile Markets

The stock market has done well over the long term, but it doesn't go straight up. There has been a lot of volatility, which makes clients nervous. The Cboe Volatility Index (VIX) may be near pre-pandemic lows, but one surprising development could change that at any moment. TV ads from personal injury law firms make the case that when something bad happens, someone is to blame. Some clients hold their advisor responsible for market declines. Although that makes no sense, it does keep many advisors from calling. No one wants to deliver bad news or open themselves up to blame. It is important to keep in touch with clients when the stock market hits those air pockets and experiences turbulence. Another industry term is "hand-holding." Although most investors would say, "I don't need that," they really do. How should advisors communicate in volatile markets? Here are my ten commandments.