Mike Roberts looks at the emotional side of investment and urges advisers to prepare clients from the start to prevent irrational decisions during periods of volatility
How would you react if someone grabbed your smartphone and ran off with it? Would you give chase, stand and shout or just shrug and put it down to experience? Unless this has actually happened to you, the chances are you just don't know. This not knowing what sort of behaviour to expect can also be applied to clients and investment markets. Many clients will say one thing when sitting in front of you, their adviser, having a rational discussion about their attitude to risk yet react in a completely different way once world events start negatively impacting on investment markets and their...
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