This pessimistic outlook of investors is especially troublesome since, historically, presidential election years bring investment concerns. Therefore we predict this increased dismal attitude may continue until the November 2008 elections and beyond. Of all the concerns facing the affluent, the stock market conditions and the economic environment have the largest impact on the investment portfolios and attitudes of these affluent households.This is a time when your clients need help and council more than ever. Successful organizations and their advisors must be able to demonstrate their value over and over in these trying times in order to earn and keep customer loyalty. You must concentrate on core competencies, like Rocky Balboa in Rocky III; its time to be get back to basics. Strong asset management firms will concentrate on asset management, advisory firms concentrate on providing objective open architecture investment advice and in-depth financial planning services to their clients. 

Clearly, the need for and relationship with advisors will change with the changing market. Investors’ expectations of advisors will be higher than in the past, and the inability of advisors to meet greater expectations may lead to a decrease in loyalty. The need to demonstrate specialization and expertise will be critical for success. Advisors will have to be specialists, and investors will go directly to specialists, or they will choose a generalist who has access to experts at no additional cost. 

“One-size-fits-all” advice will be soundly rejected by informed affluent investors, who favor individualized solutions, and applied expertise.All of these factors will influence the types of providers the wealthy will choose in the future. Providers must focus on their core competencies and determine how to effectively position themselves in the market. There is a critical balance between maintaining credibility and providing the required products and services to attract and retain affluent clients. Financial firms, especially brokerages, need to master this balance in this new, online world. 

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