Whether you believe it is an important new asset class or that it is the 21st century tulip bulb, you need to discuss crypto. Its place in the news cycle requires it.
A client driven practice prioritizes issues that are on clients’ minds. Some concerns are consistent and long-term like staying on course for significant goals. Others are shorter term and more transitory. Including Fear Of Missing Out.
Addressing current client concerns, large or small, helps keep you relevant. Clients want to know you are current and staying informed.
Some advisors I work with monitor specific indicators to guide portfolio decisions. Their advisory boards tell me that knowing their advisor is tracking specific things makes them feel secure. They feel assured that their advisor is monitoring their accounts. A client on one of those boards said “with our last advisor, once he invested the money we don’t know if he ever looked at it again.” That may not be fair to the former advisor. But it’s how the client felt, and it contributed to them moving to a new firm.
When we ask clients about the communications they receive, the most value comes from providing interpretation and insight. They are less interested in what happened than in how it will be incorporated into the strategy moving forward. Projecting an image of evaluating opportunities can work the same way. Evaluating every short-term fad or Gamestop short squeeze may be impractical, but when something has been in the headlines as long and consistently as Bitcoin, you owe it to clients to thoughtfully evaluate whether or not they should own some. And whatever your conclusion, make a point to talk with them about it.
How you deal with cryptocurrency, or any investment that makes it into the popular press and social media, from a portfolio management perspective is up to you. Because it is on your client’s mind, staying relevant requires you talk with them about it.