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Remember that gut-wrenching period when you felt like you were on a roller coaster with no straps or bars? The market kept plunging to new depths beneath you and just as suddenly shooting up only to drop you harder-on your head. The good news is that even if the recession has a long way to go, the crisis seems to be over.
Since March 9, the market has made a 37% leap and economists are reporting better news. Pundits have been talking about "green shoots" sprouting in a barren economic landscape. The bank stress-test seems to have done more good than harm, and at the very least it has been reassuring overall to most investors.
Personally, I am finding it bearable to look at my financial statements again because at least I'm seeing growth. Perhaps your clients are also peeking into those envelopes for signs of green shoots. Perhaps they are even secretly thanking you for keeping them in the market, so they can partake of the current rally. Sure we're not back to where we were in September, but I'm relieved, even happy, to see those numbers rising. It proves to me what you have been telling your clients all along: The market doesn't go to zero, it comes back eventually, and since you can't predict the bottom, you have to buy when stocks are cheap to make money from those big initial rebounds. To this end, we take a look at five funds that are leading the rally in our Fund Watch story.
So is this the beginning of the end or the end of the beginning? David Kelly, chief market strategist at JPMorgan Funds, seems to think the worst is behind us. But not surprisingly, his optimism is cautious: "While both the economy and markets appear to be on the mend, the road ahead remains a long one, and judging from the shocks and volatility of recent years, it's likely to be a rocky one."
This month's issue offers you some advice on how to build on the current optimism. BIC's top 20 program managers provide tips on how they are outperforming their peers during this economy. And columnist and coach Bob Cobb is back with some practical advice on how to engage your clients, give them direction, and show your worth even though you can't predict what the economy or the market will do. This month's producer profile also goes into some detail on how to add potentially high yields to clients' portfolios when yield is so scarce.
I think it's a very useful issue. But as always, I'm listening to hear what you think.
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