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Remind them that market movements are cyclical

Some clients will worry more than others. Your job is to reassure them

Financial planners and advisors can manage volatile markets by employing a stop-loss strategy and having sufficient cash on hand in clients’ portfolios.

Ease your clients' concerns about market turbulence by explaining that it is a normal market phenomenon and that you are looking out for their best interests. You should be discussing potential volatility when markets are stable

The guidelines are intended to help fund managers disclose the historic volatility of their funds on a consistent basis

Funds that invest in corporate bonds and other less liquid fixed-income securities are especially susceptible

Some studies show that low-volatility stocks post better returns than average

Market remains skittish

  • By: IE Staff
  • October 24, 2014 October 24, 2014
  • 09:30

Worries about a global economic slowdown have caused volatility to rise rapidly, creating opportune conditions for employing some options-based strategies in your clients’ portfolios. The Chicago Board Options Exchange’s volatility index (VIX), for example, closed at 18.76 on Oct. 9, when the Dow Jones industrial average dropped by more than 334 points. The VIX was […]

Advisors must remind skittish clients there are also risks associated with seemingly safe vehicles