When your clients and prospects hear about things on the news that could affect their financial future, are you there to guide their perceptions and allay their fears?
If not, you're missing a tremendous relationship building opportunity. More than that, you're missing out on an opportunity to gain referrals. When your clients and prospects receive timely e-mail communications from you about important financial topics, it accomplishes four things:
- It keeps you top-of-mind, so the next time they are discussing financial topics with a friend or neighbor, your name will come up naturally.
- It gives them something they can forward to a friend or family member with one easy mouse click.
- It systematically drips on cold prospects, and can eventually warm them up.
- It helps explain complicated concepts in simple terms and brand you as an expert in your field.
Consider just one example of a communication we sent our clients this week. Shouldn't you be doing the same thing?
SAMPLE WEEKLY UPDATE
(Provided by Platinum Advisor Marketing Strategies):
What is the G-20? What is a currency war? And what does any of this have to do with my money? If you’ve been asking yourself these questions, you’re not alone. The relationships that exist between global currencies and the officials who control monetary policy have been a regular feature in recent headlines. Why?
Currency values affect international trade. When the value of a nation’s currency is low, it encourages countries with higher valued currency to spend money there because their exports are “cheaper” so to speak. When the value of a nation’s currency is high, its exports become “more expensive”, and nations with lower valued currency are discouraged from purchasing goods and services produced there. While recovering from a global recession that brought high levels of debt and unemployment, it’s no wonder countries would want an advantage when peddling their wares abroad. This scenario explains why there has been a measure of tension between the U.S. and China in recent weeks.
China’s currency (the Yuan) is widely seen as being at least 20 percent artificially undervalued, which has driven up Chinese exports, but has also amassed a U.S. trade deficit with China of $227 billion in the last year alone. Ripple effects of this trade deficit are being felt throughout the U.S. political system. In Congress, the House of Representatives already passed a bill that would give the administration power to penalize countries judged to be manipulating their currency values to gain a competitive edge in international trade.
On Saturday, the Group of Twenty (G-20) Finance Ministers and Central Bank Governors met in Gyeongju, South Korea to pursue an end to battles over currencies, with the goal of maintaining trade balances. At this meeting, the world’s currency keepers agreed to "be vigilant against excess volatility and disorderly movement in exchange rates" and China agreed to "move towards more market-determined exchange-rate systems that reflect underlying fundamentals." Although the language is not strong enough to impose strict guidelines on anyone, the G-20 agreed to adopt "indicative guidelines," an intentionally vague phrase that is yet to be clarified.
So how does all of this relate back to the average American investor? First, it is a reminder that taking a global approach to investing is prudent. Because currency values — like many other factors — commonly affect a country’s economic stability, it is better to avoid keeping all your proverbial eggs in one basket. Second, it can help you keep the right perspective when the dollar falls in value. Although a severely undervalued dollar would be bad, a slightly undervalued dollar can invite foreign money into our economy, boost domestic manufacturing and create jobs.