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What do you do on a big down day?

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Feb 27, 2007 9:52 pm

Say, for example, the Dow drops 400+.  Would I be right in assuming that most reps need to spend most of the day doing some major damage control?  How do you decide which clients to contact?  Does your phone just ring off the hook?

Feb 27, 2007 9:59 pm

Not one client called me.

Using a comprehensive list, looking at it by account size and individual personality, have been makeing courtesy calls and say, at this moment, our  previous decision to pull some money off the table (rebalance up fixed portion after last year) is looking good, anyway, we don't have to do anything, you are in good shape.\

If we have a real correction, or even on a day like today, this is the premier opportunity to do some marketing. Be in touch with everyone, feel the pain, review the strategy, be in personal touch.

This is where the referrals come from - now - not so much in a steadily rising market. This is why we have been hired.

Feb 27, 2007 10:01 pm

No client calls.  Never any emergencies.  Always a plan.

Asset Allocation.  Rebalancing.  No stock trader here.

Feb 27, 2007 10:10 pm

Pray that when the updated NAV's come out at 3pm PST that your fixed income, market neutral, and flex portfolio funds held water or maybe even showed some gains...

In all seriousness, it may be best to identify those clients who may be needing a phone call to, if anything, reassure them that these moments in time do happen...

Feb 27, 2007 11:41 pm

Bought back some covered calls, bought some stock, held some hands. Not a single client called in a panic.

Feb 28, 2007 12:34 am

Call your clients sure, but call your top prospects!!!

Look, there's a very good chance that your warm prospects' brokers aren't calling them. Maybe your warm prospect took a hit and their broker is ducking them. Or maybe your top prospect is the other broker's "B" client and not worth the extra attention. Whatever the reason, CALL YOUR TOP PROSPECTS AND TALK TO THEM ABOUT THE MARKET.

You can tell the prospect that you were on a conference call this morning with your B/D's: Market Strategist, Head Honcho, etc. and they recommended..... Be the first to call your top prospects and talk about today's market. I guarantee you that for every 20 warm prospect calls you make, you'll get 1-3 accounts within the next 2 weeks. BUT you've got to work fast...

I absolutely love days like today!! I can make more marketing headway on a day like today than most any other day! Today offers a rare opportunity to separate good prospects from their "not-too-bright" brokers.

Forget cold calling until you've contacted all your warm prospects!

Feb 28, 2007 12:35 am

OK - so China wakes up one day and says "we're not growing as fast as we thought." What a joke.

Feb 28, 2007 1:45 am

[quote=Trapper SS]Say, for example, the Dow drops 400+.  Would I
be right in assuming that most reps need to spend most of the day doing
some major damage control?  How do you decide which clients to
contact?  Does your phone just ring off the hook? [/quote]



Bah, I send out an email. I point out that SDY outperformed SPY, and so a strategy of sticking to quality investments paid off when it was most needed.



I point out that most portfolios have zero/minimal exposure to EEM/BRIC and that TIPS did hunky dory today. As usual there was a flight to quality and so TSY/Muni did ok.



I regret to inform them that mortgage related investments are still
doing badly, but that they have excellent long term value.  Humanity needs: oil, viagra, electricity and loans. And so we stay fully invested in those areas

Feb 28, 2007 1:46 am

Our clients have been prepared and waiting for this for four months.

Feb 28, 2007 12:36 pm

With a balanced portfolio, not a big worry.

Feb 28, 2007 2:53 pm

I stand at my desk screaming with a phone on each ear, my tie loosened around my neck, and my hair all messed up.  Then I go to a bar and drink myself silly.  It was a good day.

Feb 28, 2007 3:34 pm

JoeDaMan,

Dont you mean you walk into the kitchen and make yourself a double???

Feb 28, 2007 5:08 pm

[quote=blarmston]

JoeDaMan,

Dont you mean you walk into the kitchen and make yourself a double???

[/quote]

No I do that after I come home from the bar and jump my wife on the couch....
Feb 28, 2007 5:27 pm

Nice work…

Feb 28, 2007 6:16 pm

Average account dropped about 1% yesterday since the majority of my allocations are conservative.

Only two calls from clients who were concerned about yesterday's activities in the markets.

After I left the office yesterday I made my semi-monthly trip to the poker room and won a NL Hold 'em tourney.    Four tables and 36 entrants.

At one point I was down to my last chip (1,000) and went all-in since I was the BB (300-600).   My A2o held up as none of the 3 of us even paired the board and the rest was poker history.   Two hours later I had all (180,000) chips!!!!!

Truly,  "All you need is a chip and a chair" personfied.

scrim

Mar 1, 2007 6:22 pm

[quote=Trapper SS]Say, for example, the Dow drops 400+.  Would I be right in assuming that most reps need to spend most of the day doing some major damage control?  How do you decide which clients to contact?  Does your phone just ring off the hook? [/quote]

I usually go down to one of the food carts on 18th street and buy a soft pretzel. Wait a minute, I do that anyway.

No worries.

Mar 2, 2007 1:53 pm

Joe, good job staying under control.



Call your prospects. The best thing about this business is money is to be made on the ups, downs and everything between.