How to Communicate Market Volatility to Clients

This mistake cost one advisor $4.2M in AUM last QTR? Silence before the storm. When markets dropped suddenly, his clients heard from CNBC first. Not from him. By the time his "don't panic" email arrived, three had already called to liquidate. While this is an extreme case, this pattern plays out in advisory firms every time markets wobble. But it doesn't have to. And while you may not lose a client, you probably lost out on referrals, have less wallet share & less impact. I've analyzed communication patterns from hundreds of advisory firms during market downturns. The difference between those who retain assets and those who lose them isn't reaction speed. It's preparation. The exceptional firms follow a simple formula: → They normalize volatility during calm periods → They build historical context before trouble arrives → When markets finally drop, they reference previous communications This approach transforms market events from emergencies into expected developments. Your clients experience you as a guide who anticipated the journey, not someone surprised by the roadblocks. And the most powerful part? This approach requires no additional work – just strategic timing. How would your clients react if markets dropped 10% tomorrow? PS "𝗧𝗵𝗲 𝘁𝗶𝗺𝗲 𝘁𝗼 𝗿𝗲𝗽𝗮𝗶𝗿 𝘁𝗵𝗲 𝗿𝗼𝗼𝗳 𝗶𝘀 𝘄𝗵𝗲𝗻 𝘁𝗵𝗲 𝘀𝘂𝗻 𝗶𝘀 𝘀𝗵𝗶𝗻𝗶𝗻𝗴." – John F. Kennedy

Early in my career, I lost a client because I didn’t understand what was really going on. The market dipped. He panicked. I showed him charts, stats, and projections. He left anyway. Back then, I thought being the smartest person in the room was enough. It wasn’t. Because clients don’t make decisions based on logic. They make them based on fear, loss, ego, and emotion. Behavioral finance changed the game for me. Not as a theory... but as a skill. Advisors who win with high-net-worth clients know this: - They ask better questions. - They listen more than they talk. - They manage behavior, not just portfolios. That’s what builds trust when volatility hits. That’s what keeps clients from jumping ship. That’s what gets you referrals from people who feel safe in your process. If you want to stand out, don’t just deliver returns. Help your clients stay the course when it matters most. That’s the value they’ll never forget. What’s one thing you do to bring emotional intelligence into your client conversations?

At Merrill Lynch, I learned trust starts with clear data. LOs, here's how to use it. Most loan officers are sitting on a gold mine of untapped data. But 99% don't know how to leverage it to build trust with clients. At Merrill Lynch, I watched top financial advisors transform raw numbers into client relationships that spanned decades and generations. Advisor quarterly meetings weren't just market updates. They were personalized scorecards showing families' progress toward specific goals. Clients could see advancement toward college funds, retirement targets, and legacy planning. This goal-tracking appeared alongside investment performance metrics. The approach kept wealthy families engaged through market volatility. Clients stayed engaged regardless of market conditions. This insight offers powerful lessons for loan officers: • Data doesn't just inform decisions • Data transforms transactions into meaningful milestones • Data builds unshakeable trust Here's the opportunity most LOs are missing: While financial advisors use data to track progress toward financial goals, loan officers can do the same with real estate: • Local home price trends that cut through media noise • Mortgage rate context that spans beyond today's headlines • Historical housing patterns that give perspective This positions you as a trusted guide through the largest purchase of your client's life—not just a transaction processor looking for the next commission. The best part? It's surprisingly simple to implement. Invest just 30 minutes quarterly for lasting client value: 1. Gather free market data from Zillow or Freddie Mac 2. Create your template once, then simply refresh the numbers 3. Deliver automatically through your CRM or Mailchimp 4. Include personalized life-event milestones that might trigger refinancing For example, one LO using this approach saw a 40% increase in referrals after just two quarterly updates. These simple analyses transform client relationships: • Create 7-year milestone check-ins that align with typical homeownership cycles • Target life events like children's graduations that often trigger equity needs • Optimize contact timing based on which emails get opened and calls answered These insights emerge from data you already have—no fancy tech required. The question is: Which metrics are you already tracking that could reveal hidden opportunities in your business?