Professional Advisors have become totally immersed in the upcoming Presidential Election, to the point of obsession, depression, and end-of-the-world-type visioning. This type of thinking scares me. You cannot advise others when you are living in a state of fear and confusion.
The emotional effects of the current economic recession sometimes result in emotional problems for clients…and their advisors. People often take the events of the immediate past and extrapolate them into the future, and many clients face life changing decisions as a result of the current effects of the financial tsunami which began in earnest in 2007. People are afraid for their future and basic needs…like a job.
A 2003 study in the Journal of Epidemiology & Community Health found that “being unemployed was associated with a twofold to threefold increased relative risk of death by suicide, compared with being employed.” In addition, a 1998 study in the British Medical Journal found “the link between suicide and unemployment is more powerful that other socio-economic measures.” Is there fear out there? You bet there is, but people need advice from those in emotional control.
Regardless of the outcome of tomorrow’s election (which has the potential to drag out for WEEKS if the polling data is accurate) you need to know what you believe. YOU MUST REMEMBER THAT YOUR CLIENTS NEED AN ADVISOR NO MATTER WHO WINS!
In order to provide advice, you need to have the following firmly in place:
- An understanding of economic history
- An understanding of exactly where we are today from an economic perspective
- A list of Principles that form the bedrock of all recommendations
- Strategies based upon the above for the most likely scenarios
Have a strategy for all contingencies based upon present fundamentals, technical indicators, and other pertinent circumstances. They do what you do best…ADVISE.
Work Hard & Have Fun!™
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