Are Your Clients Worried About A Market Crash? A Checklist For Survival

It's the end of the world!

Well, it is if you believe what you read on some Internet sites and some people on YouTube.

The other day I was sharing stories with an advisor on what was happening in the markets, what people are worried about, and the predictions made by various investment pundits on the internet.

The topics ranged from:

  • The U.S. Federal Reserve (Fed) is going to keep rising rates, and that will be painful for many investors.
  • China's currency is going to take over from the U.S. dollar.
  • The current volatility is the start of a massive crash.
  • The global economy in going into a recession.
  • The U.S. housing market is going to crash.
  • There will be a continuous supply shortage.

The list of concerns could go on and on. Whether or not any of them come true, we all know that once investors let their emotions rule their investment strategy, all is lost. As we have noted time and time again, much of the value that an advisor provides their clients is preventing them from making the behavioral mistakes that can harm their portfolio.

Still, when markets are volatile, investors may not be soothed by the knowledge that markets go up 74% of the time1 or that they generally rebound – and rather quickly at that – from any downturn. They're convinced that this time it's different.