Yesterday I was hosting a [tag]sales coaching[/tag] conference call for Cathay Wealth Management, a division of Cathay Bank. The [tag]financial markets[/tag] are crazy, and we discussed the fact that clients are looking for solutions. They need solid, proven strategies. A [tag]trusted advisor[/tag] remains calm in the face of a storm, and exudes strength and confidence, and can communicate that demeanor to clients and prospects. This calm happens when you know the history of the financial markets – we have been here before. Consider the following strategy when choosing what you will say to clients and prospects:1. Don’t Confuse The Headlines With The News. The national media sells stories with hyperbole and superlatives. Bad news sells. This bias for promoting bad news even extends to the corporate sector. A 2007 press release from PricewaterhouseCoopers Contained the following headline:
U.S. Industrial Manufacturers Expect Lower Growth Rates for the Next 12 Months, According to PricewaterhouseCoopers
When you read the article, you find the survey of manufacturers predicted quarterly revenue GROWTH of 5.7 percent! While this was a reduction from a previous forecast the predictions could still be considered robust. So look beyond the headlines to the real news.
2. Know The Dynamics of Market Cycles. Markets cycle, so recognize the predictability of cycles over time as demonstrated in different asset classes. Study financial history. Use tools such as Ibbotson Charts and other third party resources to show clients how markets ebb and flow. Be able to explain how bad news always produces opportunity, and get clients positioned to exploit opportunities when they appear.
3. Remember the Four Basic Principles of Investing
* Professional Management
* Asset Allocation
* Diversification
* Dollar Cost Averaging
In A Tale of Two Cities, Charles Dickens wrote, “It was the best of times; it was the worst of times…” While the challenges we face are many, these days can truly be the best of times for those advisors that know their story, and are proactive about taking it to the people who need it most. Also remember, your clients know a lot of people just like them that need a financial advisor just like you who is always present when needed the most.
Good selling!
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