When horrific news breaks around the world, such as the Paris terrorist attacks on Friday that killed at least 129 people, advisers need to quickly weigh whether to reach out to clients about the possible impact of such events.
Advisers in general have become much more communicative with clients whenever markets grow volatile or other threats loom, thanks in part to the 2008 economic crisis that cost them clients who felt ignored while their portfolios crumbled.
But not every experience demands communications, and experts disagree whether these shocking hits on France's capital warrant a call to clients.
Most advisers decided it did not, in part because of
the steadiness of global markets on Monday, the first day of trading since the Nov. 13 attacks.
Zachary Abrams, manager of wealth management for Capital Advisors, said no clients have called him about the events in Paris over the weekend.
The timing of the attacks on Friday night allowed the markets to digest the news over the weekend and probably helped avoid any panic that would have concerned clients and brought in calls, Mr. Abrams said.
The Dow Jones Industrial Average traded up all day on Monday, advancing nearly 200 points in afternoon trading.
Besides market activity, other factors, such as the gravity of an event and sensitivity to its parties, must be considered.
“I'm typically in favor of being proactive,” said Libby Dubick, president of adviser marketing firm Dubick & Associates Ltd. “But with this, there are many things tied into ones' religious and political beliefs, and people may feel differently.”
This is just not an occasion where the average adviser should be starting a calling campaign, she said.
Advisers who have clients with a child or another close person in Paris should probably send out a quick note to check in and make sure everything is OK with them, Ms. Dubick said.
Though she said it might make sense to send an email saying the markets don't appear to be impacted by the sad events over the weekend, going further could be tricky.
“This whole thing could just get an adviser too close to a political discussion,” she said.
Executive coach Steve Sanduski of Belay Advisors believes otherwise. He thinks any time there is a world event like these attacks or the Sept. 11, 2001, assault on the United States, advisers should reach out to tell clients they are monitoring the situation and evaluating how it might affect their portfolios — as well as to share general words of commiseration and comfort.
“As fellow human beings, it's important to let clients know that as advisers we go beyond money,” he said. “Let them know we also care about you as a human being.”
Mr. Sanduski even
penned a letter he made available to advisers who were looking for something to send to clients.
