Behavioral manipulation

Use behavioral finance to put worried clients at ease

It may seem counterintuitive to some advisers, but clients both want and need to be told that they’re wrong, according to Paul Blease, the director of OppenheimerFunds CEO Advisor Institute. Clients panic and request portfolio changes during times of market or political turmoil. To make his points about keeping calm, Blease uses graphs and data to illustrate historical context. It’s a strategy he’s found useful since his early days as an adviser following the 1987 market crash, he said. “They frankly appreciate the fact that I’m going to battle on their behalf, and sometimes that is to tell them, ‘No,’” Blease said. “I have never had a client go, ‘Well, who the hell do you think you are?'” ….[READ]

Advertisements