Friday Podcast: 1-22-16

Optimism is only half of the equation to overcoming a tough situation.

Regarding the current volatile financial markets, I hear many advisors talking right now about staying the course, we're in it for the long-term, "this too shall pass," and other similar comments. Intellectually, that makes sense as over the long-term, the odds are high we'll hit new all-time highs in the market again. But if this optimism prevents you from taking action because it will all work out in the end anyway, well, I think that's a mistake.

"Action" does not mean you start timing the market and make bold portfolio moves. Rather, I'm talking about proactive client communication and other things you can do to deepen your client relationships and show your value in times like this. I'm talking about having a contingency plan in place that you can spring into action on short notice should this current turbulence turn into a major tailspin.

In today's show, I discuss the "Stockdale Paradox" from Jim Collins and how it is timely and relevant for what advisors are facing right now. When you couple it with last week's Friday Podcast on confidence, you have two excellent tools to make sure your mindset is in "great shape" to not only weather this storm but come out stronger from it.

I also share about a dozen comments from other financial advisors who explain what they are doing right now to deal with the market turbulence. I end the show with a quote from Maria Robinson about the power of making a new decision today.