To say we are living through volatile times would be an understatement. For investors, uncertainty has become a defining feature of today’s markets, making clear, consistent communications more important than ever.

A recent headline captured the breadth of the forces currently shaping investor sentiment, ‘Investors are weighing uncertainty around interest rates, inflation, energy prices and developments in the Middle East’. Anything else?

This is just one example of the numerous anxiety-riddled headlines and narratives that investors encounter every day. In a 24-hour news environment, where economic data, geopolitical developments and market movements compete continuously for attention, investors and stewards of their capital need to distinguish meaningful signals from short term noise.

After all the stock market volatility this year, key equity benchmarks are still up year-to-date. As of the close on September 29, the Dow Jones Industrial Average is +6.9%, the S&P 500 is +12.1% and the Nasdaq Composite is +15.4%.

That can be easy to forget amid gloomy headlines and daily market swings that test investor confidence. It is therefore imperative for asset and wealth managers to converse with their clients on a ramped-up timescale, through both direct communications and third-party media channels, which provides a credible and effective megaphone.

A July 20 CNBC interview with Gavin Baker of Atreides Management regarding SpaceX, which went public on June 12 provides a good example of this. The gist of the interview focused on the drop in stock price below where the IPO listed leaving day one investors* underwater. In response to how he was thinking of the stock price downdraft since the IPO, Baker responded:

“I’m not really thinking about it. We’ll see where we are in one, two, three years.” 

That somewhat elemental but effective response instantly cemented his status as a long-term and thoughtful investor who then proceeded to give some deep, in-the-weeds analysis on why the stock is undervalued over the long-term. This served as an effective way to calm the nerves of SpaceX investors and reset the time horizon from days and months to quarters and years.

[*Note: the stock closed at $149.24 on September 29, still below its $160.95 close on its IPO day. The point here is to contextualize short-term noise both in specific equities, across investment funds, and asset classes.]

For disclosure, Atreides Management is not a client, but I have followed Baker as a regular guest on the All-In podcast which is another example of extremely accomplished investors painting a macro backdrop against which to analyze and synthesize broader markets and individual names.

To give kudos to someone on the media front that showcased cutting through the clutter with aplomb, here is Brian Sozzi of Yahoo Finance reminding his audience that despite the usual naysayers, the stock market was at record highs (at the time of this hit), and despite some valid warnings of being overvalued, he backs up his stance with a succinct, “simple reason” why:

Corporate profits have exploded, with Q2 earnings on track to increase 50%, the strongest increase since Q2 2021.

To buttress these examples, here are effective messaging tools and techniques for asset and wealth managers looking to stay relevant with clients, prospects and other stakeholders:

• Tap multi-media channels. Print and broadcast each have their utility, as do podcasts for longer-form interviews
• Maximize owned channels. Leverage website and social channels to amplify blogs, thought leadership and earned media results
• Provide context. Compare and contrast the current environment with prior market cycles. Remind greener investor cohorts that you’ve seen this movie and its sequel before
• Avoid jargon. Speak plainly. Compelling talking points and anecdotes do not need to be overcomplicated, even for sophisticated investors
• Do not sugarcoat. Be clear about risk and the need to stomach volatility, not just in the fine print
• Display conviction. Keep investors focused on medium and long-term theses, as long as they remain intact

To be clear, I am not giving financial advice, and as a marketing professional, you should not listen even if I was. What I am stressing is that those entrusted with managing money need to lean into communications – now more than ever – to forge their brand, and more importantly, keep their clients focused on long-term goals.