If there is one thing you can be sure of in investing, it is that at some point in time in the next 10 years markets will have a sharp fall. It’s just the nature of markets which are a reflection of human life.

For many financial advisors the last few years would seem very stormy. We’ve had a pandemic, a major war in Europe, global hyperinflation, and three consecutive years of decline in Chinese equities. An advisor told me, “Each time I touched the markets something happens”.

There are however, certain things we must do to make the investing journey easier for customers. These are:

1. Acceptance. The customer must be made aware that storms will happen, and we cannot predict them. The consequence of this is that often in a 3-5 year period the portfolio may be in losses.

2. Financial planning. If you don’t need the money, you have invested for 10 years then you shouldn’t really be l worried about these storms in a teacup which come and go.

3. Ability to take advantage of the downturn. If you can add to the portfolio when markets have fallen sharply, the journey to profitability will be faster.

If a financial advisor is able to impart the message of correct holding period and taking advantage of down turns, then they can avoid the trauma many suffer when their customers lose money.