Customer support in an unstable market

“But traditionally 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, sometimes months. »

When it comes to managing customer emotions, when markets are tough, Emily Ray says it’s important to really listen to your customers.

“Their feelings are fair. They don’t invent things. Their portfolio has been reduced, she said. We need to understand that our level of comfort in a 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 just here to express my opinion and give recommendations based on my knowledge. »

For example, this 70-year-old client had a significant amount of money in her savings account from a recent property sale. The money was just there and not earmarked for anything specific, “so it was a really good opportunity for her to invest,” says Emily Ray. Therefore, they gradually transferred money from the savings account, making the client able to redeem.

David O’Leary, director of Kind Wealth in Toronto, also puts the market crash in the context of future profits when he meets with concerned customers.

“We say that when the market falls, it’s the price you have to pay for assets to grow over time,” he said. The market is not constantly growing. If stocks had just risen, they would not have offered the same return. They would offer a return similar to the return on GIC. »

According to David O’Leary, this redesign could be effective.

“It goes from ‘Oh, it’s a disaster with me’ to ‘It’s a necessary part, an ingredient to get the return I need,'” he recalls. Expected. It is planned. We created a wallet to withstand this type of storm. We have a plan for this. I think so too [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 during her time.

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

The downside, she believes, is that when customers have more capital, say $ 1 million, and the market falls by 10% “figures [absolus] the falls are huge ”- even if the percentage is the same, which she insists on with customers.

Emily Ray uses the analogy of flying an airplane to illustrate her approach to reassuring customers.

“I do not like to fly. 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 talk to a client and do math [en lui montrant] that 10% is 10%, it calms him down, that I am calm, that I understand and that everything will be fine. It helps them understand that this will happen and will happen again. “

Emily Ray also reminds her clients of the time and work they put into developing their portfolios and financial plans. She likes to use the managed money approach, adding part of the cash and part of the shares.

“When a client comes to us, especially if he is approaching retirement or in the process of receiving it, the most important thing is to keep what he has and have an additional rate of return,” said Emily Ray. [Avoir] an approach that is a bit boring, a bit safe and secure can really change the situation during a bear market. »

However, she says she tends to avoid “modern things” such as cryptocurrencies and cannabis.