Protectingagainst panic

Managing client expectations and their psychological health is a key part of the role of an adviser, according to Fidelity's Martin Cambridge. A certain amount of manipulation is required to protect investors from their natural tendency to panic. He says: 'The key challenge from all of us is to respond to client expectations and if we can understand the emotional and physical driver of client behaviour, it makes it easier to address their concerns. When things get volatile and a little bit crazy, investors seem to make even worse decisions than they do normally.' Efficient market theory...