Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives
Click here to watch a video and learn more about Evidence Based Advisor Marketing.
[REITs]
Q1 hedge fund letters, conference, scoops etc, Also read Lear Capital: Financial Products You Should Avoid?
Advisors are kind, compassionate and caring. You’re also persevering and agile. You’ve beaten back the robos. You’ve smoothly transitioned from focusing solely on investments to holistic wealth management.
You’ve made clients feel comfortable dealing with mega-firms, by preserving personal relationships.
While facing unrelenting fee pressure, you’ve maintained not only your level of fees, but (for the most part) the AUM-bundled fee structure.
These are no small feats. But don’t rest on your laurels.
This isn’t another article on what’s likely to happen to your industry. I don’t have a clue.
Rather, it’s about the one group who you routinely abuse in a cruel yet unintentional way and the devastating effects of your conduct.
Unless you make some significant adjustments, your livelihood faces a threat you can’t overcome.
What’s that group?
Yourselves.
My story
I recently gave a talk to a large group of investors. The sponsor sent me the raw feedback from attendees. I received very high marks…with one notable exception.
An audience member didn’t like me or my message. His review was scathing and very personal. I will spare you the details.
By the time I read his review, I had seen at least 100 positive ones, but they made no difference. I couldn’t get these negative comments out of my mind. I obsessed over them.
Then I recalled advice given to me by a psychiatrist many years ago: “A 90 is still an A.”
I still think about that advice.
Our negativity bias
Neuroscientists have long identified a “negatively bias” that causes us to overreact to negative events. That’s precisely how I reacted to the negative comment of this audience member.
We all have this tendency. It’s programmed into our brains. Studies (discussed here) have found the brain reacts more strongly to negative than positive stimuli. This explains why we have a “bad news bias.”
Read the full article here by by Dan Solin, Advisor Perspectives
