Bear Markets & Client Expectations

Various factors, including increasing volatility, a softening housing market, risks of a trade war, and the sheer length of this nearly decade-long bull market, suggest a major correction or recession could be near.

Setting expectations now will help shepherd clients through the next market downturn. With the right strategy and mindset, financial advisors can use market downturns to their advantage, strengthening their clients’ trust in them.

However, it takes two consecutive quarters of negative growth to confirm that the economy is in a recession. By the time we know we’re in one, it’s probably too late to do much about it, in terms of portfolio positioning. That’s why it is essential to prepare in advance.

In this latest white paper from the Buffalo Funds, we discuss the following concepts:
  • Clients should focus on time in the market, not market timing
  • Bull or bear, no market lasts forever
  • Coaching vs. teaching clients
  • Communication as the foundation for your value proposition
  • Control what you can (risks, costs, emotions) and less on returns

“Great advisors know that clients reward those who can manage their investments, their expectations, and their emotions.”

Opinions expressed are those of the author or Funds and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Fundamental Approach

We get to know the companies we invest in and learn how they run their business.

Top-Down & Bottom-Up

We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.

Proprietary Philosophy

We construct our portfolios based on our own proprietary investment strategy.

Disciplined Investing

Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.