Highs & Lows
We spend a lot of time analysing our decisions and whether we can improve on how we deal with similar scenarios in the future; building principles based on successes that we can adhere to in the future.
One scenario that often crops up is when a client raises a query or comments on the performance of their portfolio; we have found that these questions often coincide with an event or media coverage that focuses peoples attention on their investments.
A sudden fall in asset values (however small) or even something as simple as the latest press soundbite can cause concern and human nature means that it is all too easy to attach too much significance to one piece of information that subsequently clouds our judgement or view.
In this day and age of emails and instant messaging an immediate response can often do more harm than good; if the query has a negative tone then the quick reply can become defensive.
There is also the risk that a lengthy explanation of what has been happening in the financial World to show that you know what’s going and to justify your approach does little to help clients - in its worst form attempting to answer a simple question by showing how much you know about a subject is simply ego!
For us the key is to ensure that the we empathise with our client, understand why they raised the query and provide a sensible explanation of what it means for them and the effect on their long term objectives.