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Emotional Rescue: Often the advisor's toughest task is to act as behavioral coach and save clients from their natural emotions of fear and greed.
- Article from:
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On Wall Street
- Article date:
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July 1, 2008
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Copyright informationCOPYRIGHT 2008 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Most advisors start a new client relationship with a frank discussion of investment goals and risk tolerances in order to create a long-term asset-allocation plan. But despite all of the big-picture planning, advisors are continually faced with clients who panic when markets get rough and decide to seek out safe havens or look to shift their portfolios away from poorly performing asset classes and toward "hot" asset classes.
Indeed, the most common failure of the average investor is to let emotion, rather than an objective process, guide the decision-making process. Often the advisor's toughest task is to take on the role of behavioral coach and to save clients from their ...
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December 19, 2007 ;
SCOTT BURNS; Scott Burns is a syndicated columnist. He can be reached at scott@scottburns.com.;
649 words
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217 words
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Jennifer Hill;
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Chernoff, Joel;
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March 15, 2004 ;
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The Effect of Investment Horizons on Risk, Return and End-of-Period Wealth...
Canadian Journal of Administrative Sciences;
June 1, 2006 ;
Alles, Lakshman; Athanassakos, George;
787 words
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