What Not to Do When Clients Freak Out

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I can tell what the investment environment is just by looking at the emails that get caught in my “junk” file. The detritus there lately tells me it’s grim.

Some firms brag about the amount of cash they’re holding. Others tout the defensive nature of their strategies. Still others push their ability to “tactically” navigate tricky markets. These come-ons are often accompanied by a proof statement that shows performance over a microscopic time period.

Their messages often start, “If you believe [choose from the following: markets could decline significantly; interest rates could go up/down; inflation/the economy may get worse; the world is about to end] you should consider [insert investment product here].”