| By John Drachman | Article Rating: |
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| November 22, 2009 05:00 PM EST | Reads: |
1,004 |
Economics for Investors on Ulitzer
Separating the facts from the hype of social media’s promise has never been more important. Is social media new and different — or a repackaging of traditional communications techniques?
Still, many investors have moved to the investment sidelines and are waiting for market conditions to improve. Yet, with the average money market fund yielding just over 1%, they may well wonder whether staying on the sidelines will help them meet their longer term investment objectives.
It is in the shortfall between where the would-be investor's expertise ends and the financial advisor's begins that we begin to see a merger of new social media's gigantic capacity for one-to-one conversations -- and the kind of conversation that could take place around the kitchen table 50 years ago, as well as today.
Whether an investor is planning for retirement, paying for college tuition or some other long-term objective, money still has to work hard enough for to help pay for their long-term goals.
That’s why one investment manager saw that market uncertainties spelled opportunity for three of the firm’s more conservative investments. Over the past year, investors certainly expressed their anxiety and voted with their feet — to cash.
But is a safe haven ever enough? Not at 1%.
That’s where the idea for a "back in the game" baseball campaign came from, to restart the the process of exploring the world of the possible by getting off of the sidelines and back into the game of investing.
But unlike most baseball-themed brochures, this one compared the emptiness of a ball park to the legions of missing spectators/investors who are not even standing in the stadium/market. What will it take move fearful investors back into the market?
Hopefully, conservative products that allow them to sample equities while enjoying a cushion of income.
Financial advisor Stephanie Sammons asks, "Do home runs typically win the game or is it consistently hitting singles and doubles? Home runs are certainly more exciting, and seem to be what we remember most about a great game. I would argue though that most baseball games are won by the fundamentals...the small stuff done right. The teams that can consistently hit singles and doubles and continue chalking up runs probably have the best chance of success."
Introducing financial social media into the client relationship process is nothing less than reintroducing the directness and intimacy of the one-to-one kitchen table conversation. The difference this time is that baseball enthusiasts who happen to be advisors can have thousands of those kitchen table conversations at the same time through a social media outreach.
Sports-minded Ms. Sammons concluded her own personal 'back in the game' approach by saying, "Ultimately, a globally diversified and balanced portfolio is the best way to combat uncertainty. Adding components such as yield to your globally balanced mix can further cushion the downside. Investors who can manage volatility successfully and aim for singles and doubles versus home runs will have a better chance for success going forward. (Go Yankees AND Phillies!)"
Read the rest of Ms. Sammons post @ http://www.stephaniesammons.com/.

Published November 22, 2009 Reads 1,004
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