Market Meltdown, Bitcoin Bubble, And Wealth Managers Collecting Assets

Gravity has again proven to impact the financial markets. In other words, asset values do not just go up and up and up. The recent reverses in the stock market and the drop in the value of cryptocurrencies actually benefit business savvy wealth managers setting the stage for them to collect substantial amounts of new high-net-worth client assets to invest.

Extensive research with affluent investors clearly demonstrate that when downward swings occur – especially dramatic downward swings in their investment portfolios – they are prone to rely more heavily on high-caliber wealth managers. It is important to realize that a critical role of astute wealth managers is to provide financial solutions to their affluent clients including helping them stay on course when “storms” appear.

Because so many investment professionals fail to adequately address the human element, capable wealth managers not only readily hold onto their high-net-worth clients but also are able to more effectively source a considerable number of new affluent investors.

Wealth managers who are very client-centered and are seen as experts are often able to maintain their high-net-worth client relationships during turbulent times. Moreover, they can usually build greater rapport with their wealthy clients that can result in more assets under management. Additionally, wealth managers positioned as leading authorities in the field and use processes such as street-smart networking to build strategic partnerships with other professionals are in the enviable position to bring in new affluent investor clients.

Now the stock market can rebound and shoot incredibly higher. Bitcoin and other cryptocurrencies can reverse course and set new records. Or many investments can continue to lose value. What is clear based on decades of empirical studies, in all kinds of financial markets that have gone up or down or sideways, is that business savvy wealth managers can become exceedingly successful. Their professional accomplishments many times have less to do with investment performance per se and much more to do with them having a solid understanding of the wealthy and the practice models of other professionals, and skillfully employing proven business development methodologies.