I bet that question took you by surprise. Judging by some of the conversations I’ve had recently, it’s probably not something you’ve been thinking about very much.
As of this writing, the Dow is dancing around its all-time highs. Financial institutions are salivating at the prospect of deregulation. Economic indices are looking good. Nobody is worried about another crash.
But you know one is coming.
The only question is when. You may remember Jamie Dimon telling us to expect a crisis every five to seven years. Even if you disagree with that timeline, you know a sell-off is inevitable at some point. It could be provoked by Chinese debt, “Italexit,” a trade war—or just an exhausted bull market that finally runs its course.
Do you have a plan to respond? Many firms don’t. Here’s a curious fact: Today it’s commonplace for businesses to conduct extensive business continuity and succession planning, preparing for natural disasters, cyber attacks, and the loss of key persons. Ironically, these are all eventualities that may never happen to a particular firm, yet everyone prepares for them just in case. On the other hand, a bear market will definitely happen again to everyone, yet hardly anyone is ready. What gives? Just another odd quirk of human psychology, I suppose.
At FiComm, we’ve created a complete communication plan ready to deploy at any moment in case of a crisis. I suggest you do the same.
I am not simply talking about market commentary. You should certainly communicate market insights if that is the type of information you like to share. But your clients will require something faster and more personal to restore their peace of mind.
Create a crisis communications plan. It doesn’t need to be overly complicated, but it should answer some basic questions.
I know, I know. You’re busy. There’s no danger now. You’ll have to put it off until later.
Just remember. Later may too late.