As markets swing on heightened volatility, investors and financial advisors should remain calm and follow steady steps instead of devolving into emotionally charged actions.
“What we need to do is we need to do proactive messaging now before the volatility starts because if we wait until they react, it’s too late,” said Jay Mooreland, Founder, Behavioral Finance Network, The Emotional Investor, at the Charles Schwab IMPACT 2018 conference.
Mooreland explained how financial advisors should be constantly engaging their clients to remind them that an investment plan is in place and to help filter the noise from sources like the media that may cause doubts on the well being of the overall financial markets.
At The Emotional Investor, the counselors argue in favor of behavioral coaching that follows a proactive and systematic process of teaching correct perceptions and setting realistic expectations with complete transparency.