Friday, January 30, 2009

Using your client's house to explain the market

I like this example of plain talk cited in Eric Rasmussen's "Who Ya Gonna Call?" in Financial Advisor Magazine (Dec. 2008).

Michael Kresh of M.D. Kresh Financial Planning uses a down-to-earth image, as Rasmussen describes.
To explain the market to clients, he asks them to imagine what would happen if they were forced to sell their house in 24 hours: A home worth half a million dollars would suddenly plummet to about $100K. And that’s just what’s going on with the stock market.

Susan B. Weiner, CFA
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Copyright 2009 by Susan B. Weiner All rights reserved

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