Do Industry Indexes Matter?
Scrolling at the bottom of TV news, daily positioned in the corner of any business section of a newspaper, posted on countless financial websites, and mentioned repeatedly on the radio are the ubiquitous financial indexes: Dow Jones Industrial Average, NASDAQ, S&P 500, etc. Do your clients understand what these indexes mean and how they relate to their portfolios?
For some of your clients, these may raise panic buttons, and others may have no clue. Regardless, client communication is very important to your clients’ peace of mind. If they have a good understanding of the fundamentals and how markets perform over time, especially during market swings, your clients will be far less anxious and appreciative of your thoughtful leadership.