No One Knows What Will Happen with Brexit… But Long-Term Investors Probably Shouldn’t Worry Too Much

This blog is from the July issue of Portfolio Perspectives.
 
Unlike fans of horror movies, markets hate scary surprises.
 
On June 22, many markets, even betting parlors, were predicting that British voters would opt to stay in the European Union (the odds went as high as 80% for staying). On June 23, gamblers and markets were proven wrong and stocks fell precipitously around the world, plunging more than 5% in the U.S. in just two days.
 
Some of the doomsayers from January, when the S&P 500 Index sank more than 10% and then rebounded to positive territory again by the end of Q1, came out of the woodwork to predict new Brexit-related disasters. Even European Council President Donald Tusk said, “I fear that Brexit could be the beginning of the destruction of not only the EU but also of western political civilization in its entirety.” Continue reading

Buy Low Sell High – Easier Said Than Done

Blog_Sell_High“Buy low sell high” – it sounds so simple when you say it out loud. Yet in practice it’s one of the hardest things to do if you let your emotions get in the way.
 
We tend to view investing through a different lens than many other aspects of life. For example, if we were in Costco looking to buy a new TV, we wouldn’t get upset if a worker came up and knocked 20% off the price. In fact, we’d probably hurry to get to the register, knowing we were getting it at a better price than the day before. So why is that when it comes to investing we often run from falling prices, wanting to own stocks only when the market hits new highs? Continue reading

Becoming More Persuasive #3 — Authority

Note: This is the third in an occasional series on language, tools and techniques that can help you become more persuasive — a vital skill for making sure more investors are receptive to the advice and guidance they need.
 
Your assistant gets an unexpected call: “Hi, I’m good friends with one of your clients. I just inherited a fair amount of money, and she said I should give you guys a call to discuss my options.”
 
Like most of us, your assistant probably goes right ahead and schedules a meeting for you with the prospect.
 
…And misses a significant opportunity to highlight your expertise and lay the groundwork for a more productive meeting and even relationship. Continue reading

Becoming More Persuasive #2 — Reciprocity


Note: This is the second in an occasional series on language, tools and techniques that can help you become more persuasive–a vital skill for making sure more investors are receptive to the advice and guidance they need. The previous blog focused on a simple way to double your chances of “yes:” Becoming More Persuasive #1 — Freedom.
 
You are at the end of a nice meal at your favorite restaurant. The waiter approaches with the bill…
 
What she does next will have a major impact on the tip you leave behind.
Continue reading

Don’t Just Do Something, Stand There!

You’re in a hurry to get somewhere, but you’re stuck in traffic on a crowded freeway. It seems like the lane you’re in just isn’t moving. But the cars in the next lane keep passing you. You’re too smart to just sit there, so you change lanes…only to find that now the lane you were just in is moving and you’re stuck again. As you keep changing lanes, you realize you’re actually going slower and getting more frustrated.
Continue reading

Becoming More Persuasive #1 — Freedom

Blog_Freedom

Note: This is the first of an occasional series on language, tools and techniques that can help you become more persuasive — a vital skill for making sure more investors are receptive to the advice and guidance they need.
 
Of the many ways you can become more persuasive, perhaps the simplest, easiest-to-implement way is what is often called the “But You Are Free” method. A meta study of 42 separate psychology studies involving 22,000 people found that this one method can double your chances of getting to “yes.”1 Continue reading

Pet Smart—Why You Should Be More Dogged About Cataloguing Client Interests

Cat 1Like many middle-aged empty nesters, my wife and I are passionate about our much beloved and terribly spoiled pets.
 
Our friends know they have to at least pretend to be interested when we share cute cat stories (gentle readers, I will spare you the details).
 
Yet no professional in my life, including financial professionals, has ever asked me a single question about my pets – or even if I have them. Continue reading