We have written a great deal about the value of ignoring the daily financial noise. It is easy to mistake volatility for loss when the markets are inherently volatile. John Bogle’s best advice on how to deal with market noise is “Don’t Peek” and “Don’t Do Something. Just Stand There!” One of an Advisor’s most significant values is to calm a client’s natural impulses to act during corrections.

Now Dimensional has created a new video, Tuning Out the Noise, to remind clients of the importance of remaining disciplined during volatile markets and to reinforce your value as an advisor in helping them achieve a positive investment outcome. Here is another recommendation to ignore the daily financial news.

 

In 2017, Dimensional Funds conducted an investor feedback survey on behalf of advisors who work with their firm. The findings show that investors place a high value on the sense of security they receive from their financial advisor relationships.

How do you primarily measure the value received from your advisor?

(Top four responses)

One of the ways in which an advisor brings peace of mind is by knowing what is normal for market movements and encouraging the client to tune out the noise which implies otherwise.