The 2020 pandemic has paved a rocky road for investors and financial advisors for investing through COVID-19. It has also conjured handfuls of trigger words financial advisors know affect their clients negatively. Words like downturn and losses are more impactful now compared to previous years.
This year has proved how volatile the stock market truly is, but it is important to remember our actions are the only thing we have control over throughout the ups and downs. When the charts angle down a client’s immediate reaction could be to panic. This type of reaction is understandable, however, it is also unhelpful for their financial future. Everyone enters the market with similar goals, no one can predict the path of their investments. The pandemic will not disappear overnight, which is why it is important for clients to manage their emotions and aim to feel more confident investing.