It was four years ago today that I wrote a post that has turned out to be quite prescient.
Each month I provide two pieces of content to advisors in The Behavioral Finance Network that they can use for their clients, prospects, and promote on social media. This content is behavioral in nature, meaning it is meant to help investors think rationally about what is going on and make mindful, emotionless investment decisions.
A big part of that is anticipating what could impact investors’ perceptions, what investors could feel, and get in front of it. When it comes to behavioral biases, especially emotional biases, a proactive approach is our best hope to help investors stay calm and make wise decisions.
The Coronavirus: A Healthy Perspective
Toward the end of January 2020 the media had started picking up on a virus in Asia that was spreading. There wasn’t too much to it, but since the media had started talking about it, I decided to create a piece of content on it. I had no clue, no inclination, that this would become anything. I thought it was just something of interest to write about.
I wrote what was known, what could happen, and shared important information and perspectives to consider. Click on the article below and you can read it in its entirety.
Because no one thought much of Coronavirus back then, there is a good chance some advisors didn’t share this piece of content. They may have read it and thought, “Nothing here…not going to share this one.” And that is the thing about behavioral content – you never know what will be of value until after the fact.
What I Wrote About This Month
The behavioral content I created for members of The Behavioral Network this month is titled, “Are We Due for a Change?” Again, trying to anticipate how investors could feel, things they could think, and get ahead of them.
With markets hitting all-time highs and because of the prevalence of the loss aversion bias, investors may be tempted to lock in their gains. In other words, they may be tempted to change investment strategies and/or engage in market timing under the guise of “lock in the gains.” Will they en masse? Who knows…some probably will be tempted to do that.
Providing timely and helpful perspectives may reduce the power of the temptation, but this only happens if done proactively. Once investors get an idea in their head, let it fester, and then call their advisor to make the change, it is too late. The advisor’s advice will have next to no effect. The biases have taken control and the decision appears to be rational and thoughtful to the investor.
What’s Your Content Strategy?
What content are you sharing with clients and prospects? If you are like the majority of advisors, you signed up with a marketing library to send out attractive, but useless content when it comes to helping investors make wise investment decisions.
If you are considering proactive content that will actually help investors weather the storms of the markets and our own biases, I invite you to check out The Behavioral Finance Network. I offer Content-Only and Premium Memberships for advisors to choose from.