Financial advisors across the country are working diligently to calm their nervous clients amidst the uncertainty and volatility leading up to the presidential election. Advisors like Margaret Wright from Truist Financial and Spuds Powell from Kayne Anderson Rudnick are emphasizing the importance of maintaining an unemotional perspective and focusing on data rather than emotions. Acknowledging clients’ concerns and providing reassurance is crucial during times of heightened nervousness.
While the main focus of financial advisors is typically on providing investment advice, they recognize that building lasting client relationships is equally important. Melissa Weisz from Corient emphasizes the significance of acknowledging clients’ feelings and concerns, regardless of their political leanings. Advisors like Craig Findley from Venture Visionary Partners point out historical data showing that market performance is not significantly impacted by the president in office, reinforcing the importance of remaining calm and rational.
Despite the sensitivity of discussing personal politics with clients, some advisors feel comfortable engaging in these conversations. Powell from Kayne Anderson Rudnick believes that it is okay to disagree with clients on certain topics, including politics, as long as there is a strong relationship built on mutual respect. However, other advisors, like Joel Bird from Ameriprise, prefer to steer clear of sensitive topics like politics and religion to maintain an unemotional and professional environment.
As the election approaches, most advisors are advising clients to hold off on making significant portfolio adjustments until after the election results are clearer. However, some investors have already made adjustments, with one in five making changes ahead of the election. With the help of their advisors, clients are exploring alternative investments and strategies, such as tech stocks, private equity, and tax-loss harvesting in preparation for potential changes in tax policies in the future.
While uncertainty and volatility in the markets persist, advisors are encouraging clients to remain patient and not make knee-jerk reactions based on news headlines. Wright and Bird emphasize the importance of focusing on companies’ fundamentals and staying the course with their investment strategies. Overall, advisors are working diligently to keep clients informed, calm, and focused on long-term financial goals despite the current economic and political climate.
