FA Center: When stocks dive, anxious investors just need a little TLC

During wild stock-market swings, financial advisers brace for turbulence. They anticipate frantic calls from agitated clients. Amid steep downturns, advisers often focus on a client’s long-term goals, champion a stay-the-course strategy, and provide historical perspective.

All of this still may not relax a panicky investor. Regardless of how well advisers train clients to treat severe declines as a byproduct of risk, market swoons still sting.

Perhaps the most common response to jittery clients is also the worst: urging them to calm down. Telling a distressed person to cool it almost guarantees they won’t.

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