Vance Barse and Rita Cheng are telling their clients there’s no need to do anything rash.
“I think the 24-hour news reel on the banking crisis has served as great fodder for the masses to live in their amygdala function, which has resulted in a lot of panic calls because it reminds people of the fear that was so rife throughout the 2008 crisis,” Barse said, referencing the part of the nervous system that handles responses to threats and fear.
“It’s prudent to proceed with caution and really understand what’s in a portfolio and what due diligence and risk management measures should be employed, because we’re living in a world where monetary policy seems to change by the minute,” he added. He advises that individuals set emotions aside and look analytically at the situation and how it is different from 2008, not least because there is not as much leverage in the market.
“I just think that the playbook needs to be updated, both at the Fed and also with respect to stewards of capital and self-directed investors,” Barse added. He labels the lens through which those entities viewed markets and the economy from 2009 through 2021 as “the old playbook.”
See Advisors to Clients on Banking Crisis: ‘Don’t Panic’ in EFT.com.