When Markets Tumble, Don’t Let Your Female Clients Leave

When markets tumble, all clients get anxious, but volatile markets undermine any sense of safety and comfort for many women, creating fear and unrest.

Many women lack the years of experience managing their investments to understand the natural volatility and investment cycles. With this lack of knowledge, women want the added assurance that their decisions were the right decisions for their future.

When there is fear, relationships can quickly fall apart, and it’s not uncommon to find women seeking advice from alternative sources.

Take the time during these volatile periods to reach out to your female clients repeatedly if need be. Call to give her that sense of comfort, knowing you are there watching out for her money.

Here are 5 ways advisors must approach and guide women through volatile markets:

  1. Remind her of the progress that has been made in her accounts. Focus only on the numbers that make total sense to her. Don’t overwhelm her with numbers and statistics; this only adds to her sense of anxiety.  
  2. Ask her questions, get to the root of her concern. The source is not always what they initially communicate.
  3. Focus on what she needs to live her life and give her a healthy perspective on her progress and financial status.
  4. Don’t disregard her fears; acknowledge her fears but help her understand that this has happened before and why the future is outlook is optimistic.
  5. As you break down her positions, remind her of the function of each part, “Some investments are for growth or accelerated growth, others for income and others for safety.”  Use this time as an opportunity to help her recognize the value of asset allocation and staying balanced in the markets, whether they are rapidly going up or down.

You can’t call too much, but not contacting her enough can create severe cracks in your client-advisor relationship.

And if some other advisors are providing more consistent perspectives and reassuring, these volatile markets are creating more downside for you that goes far beyond the value of investments.

Related: A Post-Pandemic Seminar Strategy for Financial Advisors