How to Support Clients Emotionally During Market Volatility: A Conversation Guide for Financial Advisors
When markets turn volatile, it’s not just portfolios that feel the impact—clients do, too.
Worry, fear, and uncertainty often show up long before they reach out. As a financial advisor, you’re likely fielding these emotions alongside their financial concerns. But knowing how to respond in a way that calms, empowers, and moves clients forward isn’t always intuitive. That’s where a behavior-first approach can make all the difference.
Below, I’ve outlined several talking points and frameworks you can use in client conversations to help them move from fear to clarity during times of market uncertainty. These talking points can be useful for whatever means of communication you are utilizing with clients; newsletters, emails, conversations. Think of these as guides for each of your clients’ unique needs or concerns.
Worry and Market Uncertainty
When markets become volatile, your emotional responses aren't just normal—they're actually valuable signals worth exploring. That flutter of worry or spike of anxiety you might feel when seeing dramatic headlines is your brain's way of flagging something important. Rather than pushing these feelings aside, consider transforming them into specific questions about your personal financial plan: "How might these market changes affect my retirement timeline?" or "Should I adjust my spending in the coming months?" This simple shift from worry to inquiry allows us to work together on thoughtful, personalized strategies that honor both your financial goals and emotional wellbeing.
Decision-Making During Volatility
Market volatility often creates pressure to make immediate decisions, however, research shows this is precisely when we benefit most from slowing down. When anxiety is high, our natural instinct may be to act quickly to regain a sense of control. This feeling is completely valid and something many clients experience. The challenge is that when our anxiety is high it can narrow our thinking. When making important financial decisions we want to set ourselves up for success by expanding that narrow thinking into a broader perspective. How do you do that? One way is by breaking any financial choices into micro-steps. Micro -steps look like committing only to gathering information this week, then evaluating options next week, before making any changes to your plan. For decisions that aren't urgent, giving yourself permission to revisit the situation in 1-3 months can provide valuable emotional distance. Remember, patience isn't procrastination when it comes to significant financial decisions—it's often a strategic advantage that honors both your financial wellbeing and emotional reality.
Information Consumption
In times of market uncertainty, being intentional about your financial information diet becomes essential. What is a financial information diet? It’s all of the articles you read on your phone, the news you watch on TV, the conversations you have with friends and family. The key here is to remember that headlines and even news stories are written and designed to do more than just inform. They’re designed to grab your attention. Headlines such as "Market Massacre!" or "Stock Plunge!" often activate our stress response without providing meaningful context for your specific situation. Consider limiting market news consumption to specific times, and prioritize credentialed sources who provide balanced perspectives. This isn't about avoiding reality,it's about engaging with information in a way that supports clear thinking about your unique financial journey rather than reacting to general market noise.
Worry Scale Framework
If you're feeling concerned about recent market movements, consider this simple framework: On a scale of 1-10, how would you rate your current worry? If you're at 8-10, we encourage you to reach out for a conversation this week. Worry at these high levels deserves prompt attention. For worry levels of 5-7, consider {reviewing the "Questions to Consider" section of our website}*, which addresses common concerns during volatility. If your worry registers at 4 or below, that might suggest you are feeling relatively secure. Whatever your number, remember that acknowledging these feelings is a strength, not a weakness.
{*or another information source/article you find helpful}
Perspective During Volatility
Market volatility can feel especially unsettling when we focus only on recent performance. When those feelings arise, try widening your perspective with this simple practice: before checking current market numbers, take a moment to reconnect with what truly matters in your life. This could be the relationships, activities, and values that give your days meaning. Then, remember that your financial plan was built for both calm and stormy markets, with your unique priorities at its center. This brief context shift doesn't eliminate market reality, but it helps place market movements in their proper perspective within your broader life journey.
Guiding conversations can lead to breakthroughs!
Remember, during periods of volatility, your role isn’t just to explain charts or project outcome - it’s to help clients feel seen, heard, and supported. These small shifts in how you guide conversations can lead to major breakthroughs in client trust and decision-making.
If you’re interested in more behavioral tools like these, or want help integrating them into your client process, let’s connect. Helping clients feel confident in uncertainty starts with how we show up in the conversation.
