Raymond James: Protecting Clients During Times of Market Turmoil

NEW YORK - Feb. 23, 2016 - PRLog -- John Burke, President of Burke Financial Strategies of Raymond James, sits down with Asset TV to provide his insight on the stock market, including one of the biggest concerns in the stock market:  Oil, and to discuss why easing client fears is an important part of a financial advisor’s duties.

While oil’s current market price looms around $30 a barrel, where only a year ago it was hovering at $100, there are some worrisome implications for lenders to the energy sector and for companies who do construction for them as well.

However, as John advises his clients, they should start seeing oil production drop as the drilling budgets decline, resulting in an increase in the price of oil and a relief of a lot of the current market stress.  So investing in oil now is a good way to capitalize on bargain prices.  However, as John states, the specific oil company in which to invest matters a lot.  A company like Royal Dutch Shell, for instance, is able to survive a crisis since it has enough cash on-hand to repay all of its debt and has been in existence for over a hundred years.  Likewise, its stock has gone down by almost half and has committed to a 9% dividend for 2016, so if the price of oil comes back up, investors should see a healthy return on their investment.

Still, with the market down about 15% as of last Wednesday, many of John Burke’s clients are concerned the economy is entering into a recession.  Many investors are worrying it is a repeat of 2008 all over again, but John explains that the feeling has more to do with the current market downturn lasting over 2 years.  Looking at the numbers, the current index hit -14.5% last week from the May 2015 high.  In 2008/2009, however, top to bottom the market was down 50%.  But while the downturn is not as bad as it was in 2008, this 2-year period with hardly any opportunities to make money from the market has many investors, especially those facing retirement, extremely worried.

That is why John says that financial advisors must also be “money counselors” when it comes to easing client fears.  One way to do this is to obtain a CFP license through IMCA.  A licensed CFP is required to adhere to the fiduciary standard, which means that by law, advisors must make investment decisions based on their client’s best interests.  In doing so, their clients know that they are receiving the best advice possible, subsequently easing many of their fears and concerns.

As John states, the benefits of acting as a protector of clients and their money are actually twofold.  While clients’ fears are eased knowing that their advisors are acting in their best interest, advisors can not only feel good about themselves, but they can also develop long-term client relationships which ultimately benefit themselves and their company.

To watch this full-length interview, tune into Asset TV’s PULSE: Advisor Viewpoints channel:  http://bit.ly/1SOmVvq


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