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If you have not already
sent out a client letter regarding the recent events in New York, and their effects
on your clients' finances. Or, if you are sending out a second or third correspondence,
attached is a letter you may wish to use.
This letter is a composite from several sources; Most notably, my friend and colleague
from Tucson, AZ. Ms. Laura Pendleton-Miller, who worked diligently for hours with
research and compliance. Thanks Laura.
Please feel free to forward this to any other Financial Advisors & Institutions
who may be able to use it.
For the record...My wife and I just put a significant amount of money into the market.
Call me patriotic, call me crazy, or call me a smart investor. I allude to it at
the bottom of the attached letter. You now know of at least one 20-year veteran of
the business who is actually buying right now.
(ON
YOUR APPROVED STATIONERY)
October 1, 2001
Mr. and Mrs. Client
123 Address Street
Main Street, PST 12345
Dear Mr. and Mrs. Client:
The past three weeks have been difficult, not just for Americans, but for all people
who value human life. The needless, senseless killing of what appears to be thousands
of people has shocked us all. For those of you who have family, friends or coworkers
who are lost or affected, I send my deepest sympathies.
As your Financial Consultant, I need to give you my thoughts on what this disaster
means to the economy, the markets and your investments:
First, please be assured that from an operational standpoint, your assets are safe.
Because the computers containing your information are kept outside of New York City,
your account information (both current and historical records) is fully functioning
and accessible.
Second, as far as the general economy is concerned, it is widely accepted that the
economy was already problematic before these events unfolded. Many economists and
analysts believed the economy was finally entering a period of near 'bottoming out'.
Because of the close relationship between the economy and the stock market, it was
hopeful that we would start to see positive signs in the market in the next couple
of months.
The tragedy of September 11th magnifies and prolongs these problems. Consumers may
now delay purchases. Foreign visitors and investors may wonder if America is safe.
Americans are concerned about traveling. Insurance companies will experience huge
claims. Gasoline prices may rise significantly as we contemplate retaliation in the
Middle East. In general, the initial reaction will probably be an exaggerated downturn
in economic activity.
Finally, we can look at history as a guide for the markets in particular. Historically,
the stock market initially has reacted poorly, but gradually improves. In a study
of 22 past critical events, the markets have initially declined 5-7%, but within
3-6 months, have shown positive gains. Already we have seen a 14% drop in the Dow,
with a 4% rebound.
The worse thing one can do in a time of crisis is to panic and sell. In fact, to
quote a successful investor and money manager, "To buy when others are fearfully
selling, and to sell when others are greedily buying, takes the greatest emotional
fortitude, but pays the greatest rewards." This crisis has rallied the American
people to be better and stronger than we sometimes think we can be. There is a strong
desire not to let these terrorists get the better of us in any way, including upsetting
our financial markets. I am recommending that you hold or buy throughout his period,
for both economic and national reasons.
As always, I remain available to discuss any aspects of this situation.
Sincerely,
©
Copyright 2001 Matt Bolka - Reproduction In Any Form By Written Permission Only.
Matt Bolka
is a 20-year veteran of the financial services industry, who developed a Nationwide
Financial Consulting & Investment Services firm. Today, he "builds first-class
advisors" through his professional speaking, writing and Comprehensive Business
Development coaching program. Matt consults with all types of Financial Advisors
& Institutions who seek to improve both their level of professionalism and profits.
You can contact him directly at (800) 472-3288.
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