The Dow Jones Industrial Average fell 3.5% Monday and was down about 3% late Tuesday as fears tied to the coronavirus and its economic impact continued to spread.
That had financial advisors and other professionals pontificating on the best strategies to respond to the volatility that garnered the attention of investors worldwide.
Nyle Bayer, chief marketing officer of Helios Quantitative Research, who’s worked for the RIA Up Capital Management, suggested on Twitter that making a few calls might be helpful:
“Getting zero inbound calls from your clients today is one thing, making zero outbound calls to your clients today is another!” he tweeted on Monday.
“You mean like use the [telephone]?” asked Manish Khatta, president and chief investment officer of Potomac Fund Management.
“People might actually like to talk to you! Lol” replied Bayer.
But Benjamin Brandt, CFP, of Capital City Wealth Management gave this approach a thumbs-down.
“I used to make outbound client calls during particularly difficult days/weeks in the market. I found that more often than not, I was drawing attention to something the client was ignoring before my call, and I only made things worse,” he said Monday using his Twitter handle @RetireMeASAP.
“I’ve found that managing return expectations and running clients through down-market scenarios on a proactive basis during good times in the market is much more effective,” added Brandt, who hosts the Retirement Starts Today podcast. “The phone didn’t ring once today, and I didn’t call a soul.”
Bayer acknowledged the pros and cons of this strategy.
“There is always more than one approach. However, more often than not, clients appreciate your perspective and attention to an event that they are hearing about from someone else,” he said on Twitter. “Not saying call everyone, but you certainly should call someone.”