Charlotte Beyer - Contributor

Advisors Need To Cut Through The Hype For Clients
The medium is the message was bad enough, but now the media decides the message to our clients’ detriment. How can an advisor address this issue?

Ask a few questions of your clients:

1. Why are the business channels so determined to keep us whipped into a frenzy of manic panic over the stock markets? The Weather Channel would like us to be scared, too, so we will stay tuned. Is it any different for all the other channels?

2.Would anyone watch as much TV if the ‘news’ were in-depth reporting on just one company? Unlikely. Both viewers and sponsors would complain about how dull it was and turn the channel to a more ‘stimulating’ one.

3. What else might we watch instead of following the global markets 24/7? This is a harder question in light of our increasing addiction to the 24/7 information delivered via TV, PDA’s and laptops. Assist clients in seeing the media overload for what it is – a feverish pitch for viewers! Helping clients see the damage it can do is a first step. Acting in reaction to a TV commentator’s frantic pronouncements can be poison to a well planned portfolio. Convincing your client of that is not easy, but it’s vital to the client’s fiscal health.

An advisor to private clients would be well served to diplomatically point out to clients the ultimate goal of these business channel shows: they want us to watch and keep watching.

To stand in the way of a client’s passionate conviction to trade, all gained from listening too long and watching too much, is a bold move by any advisor. However, like a physician, the advisor needs to assure the client that together they do know better, and can do better, than any TV star with rock music playing as a backdrop for market movements!

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