Customer support in a volatile market

“But according to tradition, he will return. And when he returns, he can return quickly or slowly,” she explained to the client. The best thing to do now is to take advantage of this negative period and invest slowly over weeks and sometimes months. »

Emily Ray points out that when it comes to managing customer emotions when the markets are tough, it’s important to really listen to your customers.

“Their feelings are justified. They don’t imagine things. Their portfolio has fallen, she notes. We need to understand that our comfort level with the market downturn may be different from theirs and really listen to what they have to say. After all, it’s their money and they can do whatever they want with it. I’m only here to give them my opinion and make recommendations based on my knowledge. »

For example, this client in her seventies had a significant amount of money in her savings account from a recent real estate sale. The money was just there and wasn’t meant for anything in particular, “so it was a really good investment opportunity for her,” Ray says. So they gradually moved the money out of the savings account, giving the customer the option to redeem.

David O’Leary, director of Toronto’s Kind Wealth, also views the market’s decline in terms of future success when he meets worried customers.

“We’re talking about when the market is down, that’s the price you have to pay for assets to rise over time,” he says. The market is not constantly growing. If stocks only went up, they wouldn’t give the same returns. They will offer returns similar to those of the GIC. »

According to David O’Leary, such rethinking can be effective.

“It goes from ‘Oh, this is a disaster that’s happening to me’ to ‘It’s a necessary part, an ingredient for getting the type of income I need,'” he mentions. This is expected. It’s planned. We have created a wallet to withstand such storms. We have a plan for this. And I think that [ces prises de conscience sont] valuable to people. »

Emily Ray explains that she has been following most of her clients for about 25 years, so they have seen about three bear markets in their time with her.

“They have a lot of experience with the ups and downs of the market,” she adds.

The downside, she says, is that when clients have higher net worth, say $1 million, and the market drops 10%, “the numbers [absolus] the falls are huge,” even if the percentage is the same as she insists on with clients.

Emily Ray uses the analogy of an airplane flight to illustrate her approach to reassuring clients.

“I don’t like flying. When there is turbulence, I watch the flight attendants to see what their body language is and how they react. And if they are calm, it calms me down,” she illustrates. If I’m talking to a client and doing math [en lui montrant] that 10% is 10%, this reassures him that I am calm, that I understand and that everything will be fine. It helps them understand that it will happen and it will happen again.”

Emily Ray also reminds her clients of the time and effort they put into developing their respective portfolios and financial plans. She likes to take a managed approach to money, adding some cash and some stock.

“When a client comes to us, especially if they are close to or in the process of retiring, the most important thing is to keep what they have and get an additional rate of return,” says Emily Ray. [Avoir] an approach that is a little boring and a little safe can really make a difference during a bear market. »

However, she says she tries to stay away from “trendy things” like cryptocurrencies and cannabis.