John W. Rafal urges advisors to stay the course

Essex, CT, March 4, 2014 – John W. Rafal, ranked by Barron’s as one of the nation’s top financial advisors, says clients ultimately crave conviction, wisdom and consistency in their advisor.  These qualities become critically important during market corrections and declines, when clients are most likely to make decisions based on emotion.

Mr. Rafal is the Founder and current Vice Chair of Essex Financial Services, which is owned by Essex Savings Bank and based in Essex, CT. In a new column on Forbes.com, Mr. Rafal discusses the market’s seven-percent decline in January, and how important it is that financial advisors evaluate the markets based on objective fundamentals rather than be led by client emotions.

 “We as advisors cannot overreact to the unexpected, such as January’s market swoon, if nothing fundamental has changed,” stated Mr. Rafal.  “Do we change what we are telling our clients? No. Do we react to their panic? No. Our job is to show them we’re doing the right thing, and to help them stay calm by reviewing the facts.”

According to Mr. Rafal, the hype and hyperbole witnessed during periods of unsettled markets does not help matters.  And when the focus shifts from optimism to fear, some advisors are prone to lose their natural compass -- particularly when clients express strong concerns about the risks of investing in the equity markets.  “Through informed dialogue, drawing on our experience of past market moves, we must help clients resist the urge to sell into a temporary market retreat,” said Mr. Rafal

At the same time, the seasoned financial advisor is responsible for correctly sizing up the macroeconomic picture, said Mr. Rafal.  If the fundamentals have in fact changed, then of course the investment strategy must be revised.  “If the Fed remains unchanged, corporate earnings are good, Fed policy is good and interest rates remain low -- then why would we as advisors change our convictions?” Mr. Rafal said.

Mr. Rafal’s article on Forbes.com can be found at: http://www.forbes.com/sites/johnrafal/2014/03/03/lessons-learned-from-a-markets-wobble/

Essex Financial Services, a wholly-owned subsidiary of Essex Savings Bank, is one of the leading independent financial advisory firms in the country. Cited by Barron’s as the top advisor for Connecticut in 2013 in their America’s Top 1000 Financial Advisors ranking, the firm’s unbiased, independent, client-centric approach has made it a leader in providing exceptional service to clients for over three decades.