Right now, the COVID-19 situation has turned the world upside down. Because of all the changing situation when it comes to unemployment, the economy and the stock market, financial advisors are facing a multitude of questions from their clients.
Now is the time to get all the information that you need to keep your clients calm during the current COVID-19 storm. Here are some questions that many financial advisors are getting from their clients right now.
Is The Economy Going To Crash?
One of the most common questions that financial advisors are getting is related to an economic crash. With unemployment reaching levels not seen since the Great Depression, many people are not sure what to do with their money.
It’s a good idea for financial advisors to explain what exactly is going on in the economy and how their clients can be protected from the worst aspects of any economic fallout.
What Happens If The Stock Market Crashes?
Many clients have their money invested in the stock market. Generally, these clients are going to be holding stocks, bonds, ETFs, and commodities. Therefore a stock market crash will adversely affect their wealth.
Financial advisors should be able to explain to their clients what happens during a stock crash and why it is a good idea for clients to have a long term perspective on their investments.
Has The Stock Market Crashed?
With big stock market moves occurring since March of 2020, many clients will be asking if the stock market has crashed and what they can do about it. This would be a good time to explain to your clients the classic definition of a stock market crash.
You can also show your clients a recent history of stock market crashes and how the markets tend to have their largest up days immediately after its biggest down days.
Is The Housing Market Going To Crash In 2020?
Many financial advisors will have clients who own at least one property. That means that the clients will have a significant amount of wealth invested in their homes or rental properties. Because of that, clients will be asking about the prospects of a housing crash.
This can be a complex question to answer since housing prices are not as transparent as stock market prices. Using high-quality financial advisor training resources can help you communicate with your clients about the housing market.
What Is A Bear Market In The Stock Market?
As the stock prices continue to fall, clients will wonder if the market has reached the bear market territory. You can explain to your clients the classic definition of a bear market.
You can also show your clients the history of recent bear markets so they have a better understanding of what to expect and how to protect their investments. This will allow your clients to have better peace of mind during the next challenging months in the market.
Is Now A Good Time To Invest?
Some of your more aggressive clients may be looking for a way to “buy the bottom” or find opportunities in the down market. For your younger clients, this would be a good time for them to put some of their cash to work.
For some of your older clients, you may want to recommend that they only deploy a small amount of their cash. However, it is a good idea to have some quick ideas in place to give your clients.
Keeping Your Clients Reassured During Challenging Times
The COVID-19 situation is going to create a number of concerns for your clients. This is going to be a time when your financial advisory skills are going to be put to the test. The one thing that you will want to do is be prepared for some quick answers to your client’s questions.
You want to give your clients peace of mind so they don’t end up doing something rash with their investments. Be sure to explain to your clients what a bear market, stock market crash, housing crash is and how they can possibly find good investments during this time. Giving your clients the right answers during this challenging time can really boost your overall reputation and strengthen your relationship with your clients.