Yesterday I referred to a recent article in New York magazine, authored by James J. Cramer, entitled "How to Withstand the Coming Bush Economic Crisis". In the article, Cramer launches a blistering attack on the president's economic policies, describing him as "fiscally clueless." Cramer goes on to recommend that investors protect themselves by divesting their dollar-based mutual funds and common stocks...and purchase foreign securities with an inflation-hedged focus.
You may, or may not, agree with Cramer's viewpoint.Without arguing the merits of his perspective, I do want to comment as to how an advisor could use an world economic view to make an impression with prospects and clients.
One thing to consider is that advisors have been paid to offer opinions. To some extent, this point has been lost as many advisors have consciously shunned the label of "stock-picker"...and turned towards a more market-neutral positioning, e.g. asset allocation, financial planning, etc.
I have witnessed the decline of advisors being able to offer considered market opinions. Oftentimes, when I ask the question, "What do you like?"...I get blank stares and awkward silences.
However, there is no better way to connect with a prospect than being able to offer a thoughtful opinion on the direction of the markets and the economy.
Getting back to James Cramer's viewpoint, let's assume that you agree with it. How could you use this worldview to make a distinct impression with your prospects? One method would be to craft a question like this, "Would you be interested in hearing my recommendations to my clients who want to protect themselves against the coming weakness in dollar-denominated securities?"
As I said, you may not share this pessimistic view. Fine, of course this is your prerogative. In that case, you still have the option of offering your countering opinion...and creating your own impression with your prospects.
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