November 2024
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Another Year the Stock Market Defied the Headlines
As we reach the end of 2024, financial advisers have much to reflect on and celebrate.
Global equity portfolios (year to date) have delivered returns of between 20% and 25% despite a backdrop of world events that may have swayed less disciplined investors to abandon ship. From ongoing wars to the emergence of new conflicts, alongside UK and US elections dominating the news, 2024 has served up plenty of uncertainty.
Yet, once again, the stock market (the great companies we use every day) has reminded us of an essential truth: it operates independently of the daily noise. They’re real companies, selling real things, to real people.
In an environment with as much uncertainty as this year, the ability of financial advisers to anchor themselves and their clients to a well-thought-out, long-term plan has been crucial.
This year is a testament to the power of staying the course.
Celebrating Discipline
For many clients, 2024 may have felt emotionally turbulent. Negative headlines can make it easy to assume that financial markets will inevitably suffer. However, as advisers, we understand the stock market’s resilience and capacity to price in events more efficiently than we often give it credit for. Our role is to counterbalance fear with perspective, ensuring that the families we serve remain disciplined and focused on the bigger picture.
Staying invested meant that our clients not only avoided the costs of emotional decision-making but also reaped the rewards of a remarkably strong market year. The patience and discipline that we, as financial professionals, instil in our clients is invaluable.
Recognising the Wins
Now is the perfect time to take stock of what we’ve collectively achieved. Keeping client families invested and focused through the noise has delivered exceptional results—not just in terms of returns, but in the peace of mind that comes from knowing their financial plans are on track.
We should also take a moment to appreciate the work we’ve done. It’s not always easy to hold steady in uncertain times, but our ability to do so has given our clients one of the best gifts possible: financial peace of mind.
Looking Ahead
It’s important for us to remember a timeless truth: markets are unpredictable and unknowable in the short term but remarkably consistent over the long term.
As we move into 2025, let’s continue to focus on what we can control—maintaining robust financial plans, encouraging disciplined investing, and reminding our clients that staying in their seats is often the hardest yet most rewarding decision they’ll make.
With two years of great returns now behind us, let’s help our clients to maintain realistic expectations, be prepared for temporary declines, and to stay focused on the long term at all times.
Here’s to another year of doing what we do best: helping families achieve their financial goals, no matter the headlines.
📰 Articles & Blogs
A 3-Part Approach To Establish A “Statement Of Financial Purpose” And Unlock Deeper, More Meaningful Planning Conversations With Clients [20 minutes]. Aligning a client's core values with their financial decisions through a structured framework.
The one key that leads to financial planning clients for life [3 minutes]. Creating lasting value for clients through genuine care and service is essential for building lifelong financial planning relationships.
Minding the gaps in advisor perceptions and client realities when it comes to retirement income planning [10 minutes]. There is a significant difference between the services advisers think they provide and the experiences clients report having.
The 5 Paradoxes of Planning [5 minutes]. Financial planning is fraught with paradoxes and uncertainties.
More Collaboration Means More Referrals [x minutes]. Do your clients feel that their input is valued?
20 Lessons From 20 Years of Managing Money [5 minutes]. There's no shortcut to true wisdom.
🎧 Podcasts
TRAP 58 - CUC: Completely Unnecessary Complications [90 minutes]. The TRAP pack unravel the complexities of financial planning and investment strategies and offer insights into how simplicity can often be the most effective approach.
Advisory Fee Confidence And Building The Happy-Client Stoke File [31 minutes]. Surprising data from recent research on the different ways advisors charge fees.
📚 Book Recommendations
Die with Zero: Getting All You Can from Your Money and Your Life by Bill Perkins. A practical guide on how to get the most out of your money—and out of your life.
🍿 Videos
The Challenge of Being a Choice Architect
At HUM South Africa 2019, Rob Macdonald discussed the importance of behavioural finance in helping clients navigate uncertainty. One key takeaway: clients thrive when they take ownership of their decisions.
👏 Encore
3 Predictions for the Next 10 Years [4 minutes]
Understanding pricing [2 minutes]
Writes and Write-Nots [4 minutes]
