In April, markets briefly entered bear market territory, with the S&P 500 down more than 20% in what was one of the fastest selloffs in U.S history -- and putting investor sentiment at its lowest point in years.
Then sentiment flipped, inflation cooled, and the . Even this past week, indexes hit intra-day record levels -- until Fed Chair Jerome Powell reminded everyone in his FOMC press conference that a December rate cut is not a guarantee, and optimism quickly turned into anxiety on Wall Street.
It's a perfect snapshot of the investor mindset today: uncertainty is everywhere, and confidence can vanish in a single headline or speech. This isn't new to advisors as it's a repeating pattern among clients. When markets rise, clients think you're a genius and when they fall, your phone lights up. But lately, even calm markets aren't calming anyone.
Clients aren't just worried about returns -- they're worried about risks -- life risks -- that don't show up on their statements. A cyberattack that empties an account. A healthcare bill that derails a retirement plan or a tax surprise that wipes out a year of gains.
That's why the role of the advisor continues to evolve. It's not just about being a great investment manager anymore, but about becoming a "chief risk officer" for clients. One that covers more than just volatility, but about helping clients control what they can control and spot and prepare for the unseen forces that can quietly erode wealth.
Risk management has always been part of the job -- but now it's the job. Advisors who embrace that mindset shift will redefine what it means to deliver value as it is not just how you’ve performed in bull markets, but how well you protect clients in uncertain ones. Because in the long run, the advisors who manage risk best won't just preserve wealth -- they'll preserve trust too.
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