Preparing Clients for the Next Financial Crisis

Presented by Abraham Okusanya at HUM London 2017

Going right back to the start of the HUM journey, at the London 2017 event Abraham Okusanya (Finalytiq & Timelineapp) reminded advisers of the need to prepare clients for the next financial crisis.

Advisers know that waiting for the crisis to arrive before addressing the important issues does not lead to good outcomes. The best time to do fire drills is when the ship is safely docked in harbour.

Abraham, as always, didn't shy away from making a few colourful comments.

A few of the valuable points he made:

🔥 Talking clients off the ledge too many times leads to "compassion fatigue".

🔥 The history of the capital market shows that as light follows day, red (bear markets) follows blue (bull markets).

🔥 We will at some point need to talk clients through a MASSIVE decline in the market.

🔥 Clients, if surprised by this event, will look for a scapegoat. Will that be you?

🔥 Be careful about claiming credit for a rising market!

🔥 Trying to predict the timing of the next decline is a fool's errand.

🔥 Assets that provide equity-like returns without equity-like risk do not exist.

🔥 Don't waste your time trying to position portfolios for the next decline.

🔥 Spend your time preparing your clients for the next decline.

🔥 Our brains are not conditioned to cope with the way capital markets operate, especially temporary declines.

🔥 Managing money is easy, managing clients is a *****.

🔥 The value we provide is us, standing between clients and stupidity.

To hear his 3 ideas for preparing clients for the next crisis, watch the full video below…

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