Clients will react differently to the same market events. How will you manage your different clients’ emotions as the market changes?
Since 2015, advisors have been able to can predict the Market MoodTM of clients in real time as the market changes. Now, for the first time, clients will also have access to deep insights on their own Market Mood to understand their potential emotional reactions to market fluctuations. This feature provides an opportunity for investors to have discussions with you, their advisor, before they make their next big financial mistake.
What information do clients have access to in their dashboard?
- Their predicted Market Mood described as: People like you are currently: [Mood]
- Behavioral management keys to manage their own emotional reactions
- Keys to think about when the market is up or down
- General things to consider given their unique Financial DNA
- Powerful questions to better understand their unique decision-making style
- A Market Mood Video.
Q: How do I begin to measure my clients Market Mood?
A: If your account is already configured with Market Mood: All you need to do is have your clients complete the Natural Behavior discovery process.
If your account is not already configured with Market Mood: Contact your sales consultant at DNA Behavior to discuss the options to configure your account today.
Q: When and how do I use Market Mood in my practice?
A: Check Market Mood each day:
Market Mood changes each day (based on the previous day’s closing market data). The mood of your client’s is based on trailing 15-day returns, and in typical markets, the mood of your client’s will vary greatly from day to day.
Tips for using Market Mood:
- Each day, visit the Market Mood dashboard by selecting the “Market MoodTM” tab. We automatically sort the client list for you based on Market Fear. Start by reviewing the list of clients (top to bottom) and ensure that your client’s emotions are being well managed.
- Need to touch base with a client? Follow the Action Items on the right most columns to manage your client’s current Market Mood.
Q: The S&P 500 is positive for the past 15 days. Why does that cause Apprehension for some of my clients?
A: Not all client’s have positive emotions when the markets are up. All clients have unique comfort levels for market performance. For client’s with lower risk tolerance, they like steady gains, and have a tendency to become apprehensive when the market has grown too rapidly in a short period for their level of comfort.
Q: What are the different Market Moods that can be associated with my clients?
A: There are 7 different Market Moods. 4 colors are used to show the general feelings of your clients with 7 different descriptors.
Q: Why does Market Mood calculate client’s emotions based on trailing 15-day returns?
A: Research shows that individuals tend to react more to sudden declines and increases.
Q: What parameters does Financial DNA Market Mood take into consideration to formulate the full Market Mood of my clients?
A: There are four parameters taken into consideration when determining your client’s Market Mood:
- Trailing 15-day stock market performance (or other portfolio performance as selected by you)
- Natural Behavior Unique Behavioral Style (each client is identified as 1 of 10 styles)
- Two Strongest Behavioral Biases of the client (determined based on Natural Behavior two strongest factors out of 16 total)
- Natural Behavior Risk Group (each client is identified as 1 of 7 risk groups)
Q: When does the Market Mood data refresh?
A: We have timed Market Mood based on your local computer time, so regardless of where are you are in the world, Market Mood will refresh with the latest market close data (from the previous close of the United States stock market exchanges- in NY, New York).
Regular market hours are 9:30 a.m. to 4 p.m. Eastern Time. Please note that there is no trading on market holidays. Click here for a listing of the market holidays.