“The stock market is a giant distraction from the business of investing.”
— The Little Book of Common Sense Investing, by John C. Bogle
Look beyond the heartbreaking stories and the doom and gloom about the economy and there are plenty of positives to come out of the coronavirus crisis.
Here in the UK, for example, we have a new Thursday night tradition. At 8 o’clock we go to our doorsteps and clap the heroes and heroines in the National Health Service who are working tirelessly to care for those who’ve become infected.
It’s not just doctors and nurses who deserve recognition. Teachers, delivery drivers, social workers and volunteers are all doing their bit to keep vital services going.
Nor is it just their health that people are worried about. The impact of the recession we’re heading into is going to be felt for years to come. Many will lose their jobs. Others will have to review their plans for retirement. Almost all of us will need to tighten our belts.
Financial planners, advisers and coaches are going to be in big demand.
But first the advice community has a crucial behavioural coaching role to play. Despite a partial recovery last week, the financial markets are still well down on the all-time highs we saw in February.
Yes, some clients will need to review the live of risk they’re taking. We may, after all, be only at the start of what could turn out to be a long and protracted bear market. But, for the vast majority, their interests are best served by tuning out the noise and, in the words of the late Jack Bogle, simply staying the course.
Persuading a client to stay the course can make a huge difference. Vanguard puts the value of this kind of coaching at around 1.5% a year.
That’s why, in conjunction with our colleagues at Regis Media, The Evidence-Based Investor is offering financial advice firms a package of pre-produced content designed to keep investors in their seats.
It’s essentially a bear market survival kit. The content explains, for example, the emotional and behavioural biases that investors are prone to; the long-term damage that investors do to their own financial wellbeing by acting on impulse; and the importance of learning to embrace uncertainty.
Called Stay the Course, the package consists of five videos, in your own branding, and five articles. You are welcome to use the content as you wish in perpetuity. You may want to put the content on your website or share it on social media or via newsletter. Our suggestion is that you do all three.
Because we want to help people make better investment decisions, we’re offering the content at a significant discount. The full package of five videos and five articles costs £995. The normal price would be around £1700. For firms in the UK, the price is subject to VAT.
Go on. It’s time to stand up to the plate. Be a superhero. And give yourself a clap.