Preparing clients for the ugly times

Geoff Davey | Finametrica | 12 December 2011

We might wish our clients’ investment journeys will invariably be beautiful experiences - but we know that things will turn ugly from time to time. How do we prepare our clients for the ugly times? What do they need to know?

It seems to me that what we need to do is give them a feel for the likely pattern of the experience that lies ahead. We could do this through stochastic modelling, but the technicalities are likely to be overwhelming and the results lack o...