How to discuss the market with clients

How’s the market?” It’s the question you’re asked most.

And giving a good answer allows you demonstrate your expertise and value.

Six Responses

1. Direct answer: “The Dow Jones Industrial Average closed at 15,328. It was up 55 points today.

Outcome: A simple answer to a simple question. It shows you pay attention.

Read: Send prospects the right signals

2. Direct answer with perspective: “The Dow Jones Industrial Average closed at 15,328. It was up 55 points. Let me put that into perspective. The overall stock market is up about 20% year-to-date. If your stock investments are up 20% or more, net of fees, you’re doing pretty well. If not, there may be room for improvement.”

Outcome: You answered the question in the context of the year’s performance. You established a standard. If their performance fell below the line, they should be talking to you.

3. What’s moving the market: “The market was up 0.4% today. The advance was led by the financial sector, specifically (stock) and (stock). The health care sector suffered the greatest declines.” You learned this by checking a website reporting sector performance before leaving the office.

Outcome: Wow, you really know what you’re talking about! You pay attention! Is that decline in health care stocks serious? Why didn’t my advisor call me?

4. Not giving away free information: “The market was up 55 points today or about 20% year-to-date. It’s been very good for clients who got into the health care sector early this year. That’s up over 28%. Some clients are thinking of taking profits.”

Outcome: You’ve told a success story. You haven’t given away free information by suggesting what to buy because you mentioned what people might be selling.

Read: Charm wealthy prospects

5. The flat market: The market has gone nowhere for months. The indices have hardly budged. After reporting the numbers, you add: “It’s an investor’s market, not an index market. It’s very exciting because that’s where we add value…” You mention a couple of sectors that have done well.

Outcome: You’ve confirmed their suspicion professionals in the industry know how to make money when the market appears dormant. You are one of them. You could be helping them. Your knowledge has value.

6. The best returns: “The The Dow Jones Industrial Average closed at 15,328, up 55 points. The broad market is up about 20% for the year. However, the best returns came from the health care, financial and industrial sectors, up 28%, 24% and 24%, respectively. Telecoms fared worst—they’re up only about 6% year-to-date.

Outcome: You’ve showed a deeper understanding. You know the numbers. You know the returns. You also know how they got there through the performance of the underlying sectors.

Read: Never use these 10 expressions