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I’d rather pierce my own ears than read another advisor-written economic update piece. Advisor economic updates stink.
Shouldn’t be doing it
Advisors shouldn’t be in the business of managing money or writing economic updates. Managing investments takes an entirely different skill set from managing people. Do both and you’ll do neither well because you’re running around like a crazy horse.
There’s a lot of capable TAMPS. I know, I know. You want to be the brainy advisor up above the stars so high like a diamond in the sky. And it stinks to take a cut on the pesos. But consider this: while your eyes are glued to MarketWatch, advisors are on LinkedIn messenger talking to your clients, prospects and the CPA who sent you your last piece of business.
I know because I am teaching them how to do this.
Oh but we’re different! We’ve outperformed the market and our portfolios didn’t go down in the last recession. Oh yeah? Do you have the GIPS-verified track record to prove it or is this a case of selective memory and cherry-picking?
Not an original thought to save your life
Economic updates are parroted words from someone who really knows what they’re talking about. But the reader doesn’t know that because advisors don’t cite them properly. If they did, the reader would be assaulted by every single sentence having a footnote citing sources like Ned Davis Research. It would be obvious there is not one original idea belonging to the advisor.
Why bother trying to paraphrase someone else’s thoughts? Save everyone the time and just write this:
Unfortunately we didn’t have time to copy and rephrase someone else’s economic update this month. Instead please kindly refer to this piece written by Dimensional Fund Advisor’s market research team. Use our credentials to log on: xxxx.
The worst cliché
It’s more about the advisor’s ego and wanting to be perceived as smart rather than the intention to make anyone else’s lives better. I know, you’re way more intelligent than the organizations with research teams of hundreds of people. I got the memo.
But do you have to be such a stiff?
These pieces epitomize the cliché that permeates advisor marketing: pretentious, dry, boring and harping on ideas that nobody besides the advisor cares about! If you doubt that nobody is reading these, try this experiment: In the middle of your twelfth block paragraph (you know how everyone writes these mega block paragraphs of six sentences) write this line:
I love Pelor and Lich from Dungeons and Dragons. Who’s your favorite character?
You’ll get no response because nobody is reading.
Formatting suggestions
No matter what I say, there are some of you who will insist on being stubborn and writing these. No, Grillo, I’m different! I am the next Warren Buffett. It’s just that nobody knows yet.
Here are some formatting tips to liven up your economic updates:
- Put it on video. You have a slightly higher chance of someone paying attention to you. Make the video one minute or shorter and link to the written article if they want more detail; don’t assault them by reciting your whole economic treatise in one video.
- Cut the block paragraphs. Add bullet points and use no more than two sentences to express one idea.
- Add a bullet point summary at the top of the article.
- Use infographics, not graphs.
- Get rid of the speedometers picture.
Content suggestions
Here are some content tips to write an economic update that more people will read:
- Include humor here and there. I promise this will not kill you.
- Use a pop culture reference every so often. You will be perceived as less of a stiff.
- Talk more about what I care about as an investor – what this means for me and my yen. Advisors always put that one line at the end — something like: All of this doesn’t matter. We’re in this for the long term, individual asset classes matter less than asset allocation. Instead, why don’t you put some thought into what it may mean for me, your client, if your thesis actually comes true? Am I going to get a call from you? Are you going to trade my portfolio? Should I trade my portfolio?
- Answer client questions, questions that people ask you, instead of writing about what you think they need/want to hear about. I did this here for my own business and it was very effective.
- Discuss what surprised you about the recent market movements instead of just stating what they were.
- Talk about something you see as unusual or don’t understand and don’t have the answer for.
- Talk about what popular influencers think that they pay attention to (remember clients love watching Cramer, CNBC, etc. and they think these people are smart because they’re on TV) and why you agree or disagree.
- Discuss what happened the last time people were predicting what you are predicting, and why they were right or wrong.
- Identify the risks to your thesis.
- Include a glossary of technical terms you use in the piece so people actually understand what you are saying.
Sara’s upshot
Send me your market commentary piece if you’re brave enough to hear my comments. Or, if you’re really brave, post it on APViewpoint for all to see.
Sara Grillo, CFA, is a marketing consultant who helps investment management, financial planning, and RIA firms fight the tendency to scatter meaningless clichés on their prospects and bore them as a result. Prior to launching her own firm, she was a financial advisor and worked at Lehman Brothers.
Read more articles by Sara Grillo
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
