Grateful for Their Grit

By Brian J. Cunningham, CFP®

This is my first blog of 2021, but not because I don’t have anything interesting to write about it. The truth is I have been extremely busy over the past two months with a multitude of client review meetings. During the second week of January, we scheduled two or three a day. This isn’t typical. But as we can all agree, nothing about the past 12 months has been as usual. And that’s why I’m writing this blog. To thank my clients for riding out 2020 by trusting me and demonstrating the three characteristics of the very best type of wealth management client. They waited, they respected my judgment, and they listened! That’s why these review meetings are so enjoyable. We’re discovering that taking a measured approach to managing their accounts has supported their confidence in my guidance.

Long Hours and Strategic Conversations

“I wasn’t worried when I didn’t hear from you every week,” said one of my clients, “I knew from our history that you were following the markets. When you had definitive recommendations, you would be in touch.” She was right. Once I gave my clients my advice regarding their investments in those turbulent times, we stayed the course. And although I might not contact them with every new market development, I spent more time than ever on their behalf. I was consistently researching the multitude of economic changes as they occurred and measuring their impact on their accounts. I was always available to my clients if they heard something in the financial headlines that concerned them. But, unless there was a significant reason to contact them, I remained focused on my research. And as the end of 2020 rolled around, all those hours, days, and months tracking the unknowns didn’t magically end. We still had the election in November and the senate race in Georgia in January to get through.

The Value of Staying Power

Early on in my profession, I used to hear more experienced advisors say, “In tough times, you must take action. Buy and sell. You want your clients to know you are working on their behalf.” I NEVER followed that recommendation because to me, it sounded like engaging in activity to look busy. For several decades, I have given completely different advice. “Don’t be afraid to let the profits run if the narrative is the same.” That doesn’t mean we won’t analyze, tweak, or rebalance, but making significant changes because forecasts seem dire is never my approach. Carefully developed strategic investment plans are based on objectives that generally don’t change. Market vagaries, political upheavals, and natural disasters are always in the background. Now, if a client wants to buy a car, invest in a vacation home, or help a family member in need, that changes the story somewhat, and we’ll make adjustments accordingly.

Pandemic, Politics, and Profits

There were plenty of reasons for investors to panic last year. That is why I am particularly proud of my clients who resisted the knee-jerk reaction of selling off to seek some control.

COVID-19 brought business and school closings, shutdowns, slowdowns, and disruptions beyond anything we had experienced before. The political landscape had never been more divisive, with each side warning of our financial system’s devastation should the other side win. When the stock market reached all-time high some investors thought it was time to reap the profits. My advice countered those three P’s with a much more powerful one – Patience!

What Next?

Not surprisingly, my advice for my clients in 2021 isn’t going to change much. We may suggest adding gold as a protection against inflation. Overall higher markets might mean higher volatility. The new administration may raise taxes. New stimulus checks may mask decreases in consumer spending. I’ll be researching these variables and all new developments as I monitor investments and consider recommendations in the months, years, and decades ahead.

Our Most Sincere Thanks

We appreciate our clients and sincerely thank them for trusting us throughout a most challenging year. We missed seeing you and catching up on your family news. If we haven’t had a chance to meet recently, let’s figure out a safe way to reconnect soon!