Tag - investor fear factor

Advice to the Advisors

Sheaff Brock Institutional Group | VIX | The "Fear Factor"

When Market Volatility Causes Client Fear, Cite the “Fear Factor”

The VIX, ticker symbol for the Chicago Board Options Exchange’s Volatility Index, has the nickname “fear factor.” Paradoxically, a high VIX is not necessary bearish for stocks, you can remind clients, because market volatility refers to upward movements in the market along with downward ones. What a high VIX reading does mean is that investors are seeing significant risk that the market will move sharply, whether up or down. The VIX tends to be low in “ho-hum” times, when [...]

Advice to the Advisors

Sheaff Brock Institutional Group | client watching tv needing comfort care for investment market volatility

Financial “Comfort Care” During Market Volatility

Comfort care, in geriatrics, involves offering attention to the psychological and spiritual needs of the patient and the patient’s family. These days, it seems, financial advisors are being called upon to provide comfort care to their investors, many of whom are suffering from market volatility-induced manifestations of the investor fear factor. It’s no exaggeration to say that advisors today serve as our industry’s “financial health psychologists,” understanding how psychological, behavioral, and cultural factors contribute to our clients’ financial health—or [...]