{"id":10290,"date":"2022-06-02T12:09:00","date_gmt":"2022-06-02T17:09:00","guid":{"rendered":"https:\/\/www.figmarketing.com\/blog\/?p=10290"},"modified":"2023-09-22T14:29:04","modified_gmt":"2023-09-22T19:29:04","slug":"7-thoughts-to-share-with-those-anxious-about-uncertain-markets","status":"publish","type":"post","link":"https:\/\/www.figmarketing.com\/blog\/7-thoughts-to-share-with-those-anxious-about-uncertain-markets\/","title":{"rendered":"7 Ways to Address Market Volatility With Clients"},"content":{"rendered":"\n

Updated September 22, 2023, at 3:28 PM<\/em><\/p>\n\n\n\n

Life can be uneasy for anyone paying attention to the markets at a given time.<\/p>\n\n\n\n

All we need to do is look towards the VIX<\/a><\/strong>\u2014the index designed to track S&P 500 volatility\u2014to see how investors feel about the market\u2019s direction.<\/p>\n\n\n\n\n\n\n\n

The VIX, or \u201cFear Index\u201d as its known, tracks fear and stress in the stock market, and it\u2019s been up and down lately. The greater the number, the more uncertainty and fear. And levels above 30<\/strong><\/a> indicate \u201ctremendous uncertainty.\u201d<\/p>\n\n\n\n

In mid-June 2022, the VIX peaked at 34.02 on June 13 and hovered between 29.62-34.02 for over a week. As of this writing, it’s since subsided to sub-27 levels but continues to seesaw in action. Meaning the market isn\u2019t stable and volatility is still a big concern.<\/p>\n\n\n\n

Clients are likely feeling this uncertainty, but they don\u2019t need to face it alone. If you have clients worried about market volatility, we\u2019ve outlined some thoughts you might consider sharing with them to help ease their worries and offer peace of mind in their financial choices.<\/p>\n\n\n\n

1. Remember the Long-Term Goals<\/h2>\n\n\n\n

Market volatility doesn\u2019t make anyone comfortable, but when the market is acting wonky, it\u2019s good to remind worried clients that overreaction and emotional decision-making can lead to investment pitfalls they ultimately want to avoid. There are financial benefits for looking through the long-term lens.<\/p>\n\n\n\n

Think back to 2008-2009: when the financial crisis struck, the market plunged but ultimately rebounded, giving way to the biggest bull run<\/a><\/strong> in history. It\u2019s almost impossible to time the markets, so if clients have time to recover, they should remember there\u2019s time to recover for many of us and that goals can still be achievable.<\/p>\n\n\n\n

2. Resist the Urge to Check<\/h2>\n\n\n\n

*Checks phone at 9:30 AM.*<\/p>\n\n\n\n

Then again at 11 AM. And 2 PM. And right before the market closes. That\u2019s precisely what you don\u2019t want <\/em>clients doing. It\u2019s hard to ignore all the articles and market information out there, but sometimes it\u2019s best to encourage clients to turn off the TV, silence the stock app notifications, and un-bookmark Marketwatch.com<\/a> from the browser.<\/p>\n\n\n\n

This leads back to our first point of emotional, knee-jerk reactions. Obsessing over market movements can lead to unneeded panic and bad decisions. Urge clients to keep an eye on the markets and economy, but don\u2019t get consumed by it.<\/p>\n\n\n\n

Related: 10 Pieces of Retirement Planning Advice Retirees Wish They Had Known Sooner<\/a><\/h4>\n\n\n\n

3. Think About Ways to Protect Assets<\/h2>\n\n\n\n

Long-term views in mind, other vehicles can prepare clients for retirement. Have them start thinking about other options that protect them from market instability.<\/p>\n\n\n\n

Annuities like fixed index annuities<\/a><\/strong> (FIAs) or fixed index-linked annuities<\/a><\/strong> (FILAs) might make sense for clients to keep them engaged with the potential market gains and<\/em> protect by mitigating the impacts from significant market losses drops.<\/p>\n\n\n\n

4. Keep Attention on What We Can Control<\/h2>\n\n\n\n
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No one can control or fully predict market volatility, so there\u2019s no real reason to waste mental energy on it. If a client is hellbent on watching a volatile market and won\u2019t let it go, try to turn their focus on things they can control, like their investment mix, allocations, and contributions.<\/p>\n\n\n\n

We\u2019ve heard success stories with this \u201cdistraction method,\u201d so it\u2019s worth a shot if your client just called for the third time this week about their portfolio\u2019s performance.<\/p>\n\n\n\n

5. Offer Techniques to Combat Skeptical Thoughts<\/h2>\n\n\n\n

Clients can often get stuck in a performance-first mindset. But in a volatile market, that\u2019s not always a good thing. Instead, use some planning techniques that look at the bigger picture to help clients realize they\u2019re still on track. Try using:<\/p>\n\n\n\n