Should Advisors Care About GameStop? Yes. Here’s Why.
Don’t underestimate the power of social media and its ability to mobilize, organize, motivate and influence people, including clients.
When I ask advisors how recent headlines are impacting their communications with clients, the typical response is, “My clients don’t care about Tesla or Bitcoin. They’re not focused on what people say on the Internet. They know we have a sound, long-term plan in place.”
I asked that question in March, when most of us went into mandatory lockdowns because of COVID-19, and again, a few weeks ago, when a mob stormed Congress and sent Washington, D.C. into chaos.
I asked again yesterday, when a Reddit subgroup called r/WallStreetBets drove up the price of GameStop, AMC and Blackberry by nearly 1,000%, collectively, and eviscerated hedge funds across Wall Street.
But my question now is, if your clients aren’t engaging with you about the current events dominating news cycles and social media feeds, then who are they engaging with? Because they’re talking, listening and exchanging information with someone.