Timely template letter: If you do nothing else during this global crisis, send your clients this letter

(March 2003) Send out this customizable template letter to let your clients know that you are thinking of them during this period of global crisis and are at their beck and call if they have any questions about their investment portfolios or overall financial plans. This gesture alone may be all a client will need to feel less anxious.

Dear [Client’s name],

These are certainly fascinating times that we live in. And while it obviously pales in comparison to the human suffering and sacrifice that accompany any war, historic crises or conflicts such as the [current/impending/recent] U.S.-led attack on Iraq are often not friendly to the stock market and, by extension, your investment portfolio.

It’s natural to be concerned during these times of uncertainty, but I’m writing to suggest we turn to history for some perspective.

There can be no denying that political events have a profound effect on stock market performance, but in many cases that effect is only for the short term. Take the last major conflict in the Middle East as an example:

When Iraq invaded Kuwait in the late summer of 1990, European markets fell by 20%. Newspaper headlines warned of impending recession and economic hardship. By the time the Gulf War ended in late February 1991, however, the European markets had actually rallied by 25%. In fact, despite all the wars and conflicts that took place between 1957 and 1997, there were no 10-year periods with negative returns on the Toronto Stock Exchange during that time.

Obviously that’s no guarantee the markets will react exactly the same way in the future, but it certainly is proof of the fact that long-term investors have realized gains while those who panicked and cashed in their investments were left with nothing but their losses.

It’s okay to be worried, and it’s good to have questions — that’s why I’m here. Should you wish to speak to me about your portfolio or any other facets of your overall financial plan, please don’t hesitate to contact me at the number above.

Best regards,

[Your signature]

[Your name]

• • •

With the current chaos in global politics and the ongoing volatility in the stock market (and many investment portfolios, by extension), it’s natural for your clients to be anxious right now and to have some questions. That’s why you’re there for them and that’s why Advisor.ca has assembled a special package of five powerful tools to help you combat client uncertainty. To view the full contents of this package and why you should be using these tools now, please click here.

03/19/03

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.