The Two Most Important Skills

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After thirty years of training and coaching in the Financial Service industry, I have learned that two skills stand out as the most important to the success of any advisor and their practice. Not knowing these skills can not be held against them because they are not taught the skills by their firms and only a few ever discover the great importance of the skills, master them, and rise to the elite ranks of the Chairman’s and Director’s clubs. 

Every practice must contend with two time frames that are vital to success. The present, full of its myriad distractions, and the future, where the hope of greater success always resides. The past no longer exists, but for too many it remains a constant interference. Advisors who place the past in its proper sphere as tutor, and learn it’s lessons, are able to concentrate time and effort in the work of understanding the present and preparing for the future. 

Each of these two times frames corresponds to a specific aspect of a financial practice. The present is handled by the Consulting and Relationship Management  division of your business. The future is the focus of the Administration and Operation division. Whether a practice is managed by a large team or a single advisor, both divisions must be in operation. Even though an advisor’s primary focus is the present, they must place as much attention on the future and this becomes the problem. 

Immoderate attention on the present leaves a practice open to be blindsided by changes in the world around them. Excessive focus on the future undermines a practice from within. Though an advisor should delegate as much as possible, the skills necessary to balance the present and future must reside in their own toolbox, otherwise the team will flounder. 

A practice must protect and grow client assets and reduce risk in the present, that is the purpose of Consulting and Relationship Management. Simultaneously, they must prepare and plan for the future changes necessary to steer the practice through obstacles ahead, that is the purpose of Administration and Operation. 

The present and the markets are not intuitive, otherwise everyone would be successful investing and avoid the losses that frequently occur. For this reason only advisors who master the art of thinking Counter-Intuitively succeed in the present and the markets. 

At the same time, change is a constant and requires continuous adaptation, otherwise you could keep doing things the same way forever. Those who do not change eventually discover their mistake. An advisor must future-proof their practice or risk being blindsided or left behind. 

Your ability to think counter-intuitively in the present and adapt and change your practice in the future, will allow you to exceed your client expectations in the present and also future-proof your practice for what lies ahead.

Countdown to CII 3.0 Workshop and Action Sheet Launch

2-Week Conference Call Workshop Series

Does the volatility of the markets bother you and your clients? Below is a quote from an alumni of the workshop.

The problem 10 years ago was I had no effective way to deal with it in clients' portfolios. Now I do and I thank God every day that my Branch Manager introduced us to you three and a half years ago. - Tony Liokossis - BMO

Time is running out to register for the workshop. See the Countdown Timer in the sidebar.

  • Would you like to know the answers to the five most important investment questions every day?
  • Did your clients have negative returns in 2008?
  • Do you want to protect your clients' assets from future market volatility?
  • Would you like to better manage the risk in your portfolios?

If you answered "yes" to any of these questions, you will want to participant in these two complimentary conference calls. Learn the Counter Intuitive Investing process that can help you avoid the large declines in stocks by using Relative Strength. Today’s technology puts you back in control of your practice and gives you the ability to protect your clients' assets.

CII Conference Call Workshop Details Dates: Tuesday, August 2nd and August 9th Time: 4:00-5:00 pm Eastern Cost: Complimentary Conference Call To Register: Send your name, firm, and email address to office@LloydWilliamsInc.com

 Introducing Action Sheets

The most useful investment tool I have ever found is now available. Whether you use stocks, bonds, mutual funds, managers, ETFs, closed-end funds, or a combination, the new Action Sheet will provide the answers you need to better manage your clients' assets. Never before has all of this information been available in one place and so easy to access, customize, and implement.

Below is a chart of the performance of the Action Sheet for the past five years compared to all stocks or a 60/40 portfolio. Notice the positive return in 2008. Register to find out more about this powerful tool that will help you better manage your client portfolios.

To Register: Send your name, firm, and email address to office@LloydWilliamsInc.com

 

Action Sheet Performance Chart

During the workshop you will receive all performance data to help you in marketing. The workshop will also include sample client and prospect presentations. Read below to see what others have to say about this workshop.

What Previous Attendees Said:

“A quantum leap forward! I have been in the business for over 7 years now. In March I became a monthly coaching client of Lloyds, and since have joined the Counter Intuitive conference call series. As a technical analyst fan, I was ecstatic that Lloyd brought forward the system presented in the series. It makes sense, it is straight forward, and you can customize it to your own style. Once again Lloyd has provided massive value for my clients, my team, my business and my own personal goals. Nothing feels better than having crystal clear clarity for the operation of your business. Imagine building and running your business day to day and having the bandwidth to focus on what matters most; all the while having a system to manage your participation in the markets - which you do not have any control over. I highly recommend Lloyd’s series for anyone who is committed to making a step forward.” - SB

 

“Just thought you’d like to know that the three IA’s who are working through your Counter Intuitive Investing program are more engaged and excited than I have seen them in their careers! They have the confidence and conviction that is infectious. One described it as “what he has been waiting for all his career”. They are excited to roll this out to clients and have no doubt that, along with the Relationship Conversation, they have the best offering in the city! I wish we could get all 37 IA’s this excited and engaged.” - DS – Branch Manager

 

“I cannot say enough about the great help you have provided my team in terms of stressing the importance of the “Client Relationship”. However, your recent emphasis, via the Conference Call Workshop Series, dealing with the “Financial Relationship” has been awesome! I wish I knew this material long ago!” - DH

 

“We continue to be incredibly excited about the coaching, conference calls and the Point & Figure process you are introducing us to! Thank you.” - JR

 

“Great program, by the way! I am moving to change the way that I run my business and inherently the way we manage the risk of client investments. I do so agree that these times require new tools. Your program is very useful to me thus far!!” - PM

 

“Good class and we have at least one new item to add this week to help us to the next bigger step, thank you.” - DB

 

“This process is helping me answer some of the nagging questions my clients or I have had over the years, which were thrown into sharp relief in 2008. I can’t see myself being limited only to traditional asset allocation and fundamental strategies for the future.” - LK

Sign up to participate in what many are calling the “most valuable workshop in my career.”

To Register: Send your name, firm, and email address to office@LloydWilliamsInc.com

Interesting Chart: Home Prices and Gold

The compound effect of the decline in real estate and the strength of commodities has created an interesting comparison. The important decision is how to position yourself now.

Subscriber Only Content Subscribers should do a comparison of IAU over the past five years to see just how strong commodities are on a relative strength basis.

Presentation Skills: Preparing the Field

Two often when a group presentation is made to prospects, the solution is delivered too early. It is like a farmer planting a field that hasn't yet been prepared. A presentation should identify the fear the client has and the problems the client faces. You should lay the groundwork by plowing up the ground, then tilling to chop up the dirt so that later when the solution is cast on to the ground, as seeds out into a field, they are cast to a ground that is ready to receive the seeds.

If you try to present your solution in your initial presentation, you waste it, like trying to seed unprepared ground. There is no trust. There is no understanding of the need or problem they have to solve. There is no understanding of the fear that leads to their discomfort.

First, understand and establish the purpose of your presentation: education, information, or new clients. make sure that this purpose is present throughout your presentation. Too often advisors conduct group presentations with the intention of creating new clients, but are caught up in the information delivery and then wonder why few scheduled any follow-up meetings. The "purpose was lost in the presentation." Know your purpose and stay on topic.

Second, focus on the problem and the need: the volatility that exists in the market place, the future return of another 2008, the myths of the marketplace, the fact that most solutions will not work again, and most of all the audience's need to become and remain retireable.

Third, once the need is established, a Relationship Conversation is needed to identify their future and better understand their desires. Are their dreams important enough to them to be the destination they want to go after. If they are, then we need to build a bridge to get to that dream to get you from where they are to where they want to go. That is going to require an action plan. To build the action plan we need an analysis to build a road map from where they are today to where they want to be in the future.

Fourth, confirmation of their trust by others. While you are preparing the analysis, the prospect talks with two advocates to answer questions concerning what it is like to work with you. Third party confirmation is a necessary step.

Now the field is prepared to receive the seed of your solution. Here is where you present your solution: after trust is established, their problem is clarified, their goals are identified, and their trust is confirmed by others.

What you've done in your initial presentation is laid the foundation for the need for them to come in for that analysis. So before you can give a solution you must understand them at a deeper level and be able to connect the solution to their real situation. Too often, people deliver the solution up front when the ground is too hard and unplowed and untilled, and the seed dries up and dies.

Now when they come in for the third time, once at the seminar, once for the conversation, and now for the presentation of your solution, the soil is prepared to receive the seed of your solution.

Remember: Know you purpose and prepare your prospect, before you present your solution.  

Interesting Chart: Future of Commodities?

Source: Jeremy Grantham - GMO Quarterly Letter - April 2011

  When the world's fastest growing economy is consuming commodities at these rates... what is the future of commodities?

Subscriber Only Content For more information on the impact of consumption will have on commodities and their position in the marketplace and client portfolios please download summary page from Jeremy Grantham's Letter. Made available by permission from the publisher.

Interesting Chart: Gasoline

Source: Chart of the Day

The SIA Market Report portfolio has an 8% position in United States Gasoline FD LP (GAS) as one of the strongest relative strength commodities. See chart below.

Source: SIA Market Report

If you are not a subscriber and you would like to gain access to the full portfolio details, you may receive a 14 day free trial at http://www.ActionSheets.com and be sure to select Lloyd Williams as referrer to have access to the Subscriber Only training and resources.

Please share your comments or forward post to others.

Another Reason for Tangibles

Colin Barr wrote an interesting article for Fortune last week, titled Lost decade? We've Already Had One. The article sheds further light on the blog post earlier concerning the increase in earning on the S&P 500.

GDP that stems from new debt — mainly deficit spending — is phony: it is debt-financed consumption, not prosperity. Net of deficit spending, our prosperity is nearly unchanged from 1998, 13 years ago. - Rob Arnott of Research Affiliates

The article reinforces our concentration in commodities and commodity-driven markets as the assets with the greatest relative strength. Domestic US equities substantially lag in strength and hold a minority position in the portfolio currently.

Subscribers will recall the importance of the low correlation between tangibles and intangibles. These two large market categories comprise the macro movement of the markets, as they shift over long periods of time from tangibles to intangibles. Those investors limited to only the intangibles of stocks, bonds, and cash are handicapped in all markets conditions.

Please add your thoughts and comments above.

Journalism Described by a Journalist

From The Paris Review - Spring 2011

Janet Malcolm has written many books of non-fiction and magazine articles since her publishing debut in The New Yorker in 1963. Yet for all the volume of her output (and its quality), her largest claim to fame still probably rests on one 26-word sentence she wrote more than 20 years ago. The sentence reads: “Every journalist who is not too stupid or too full of himself to notice what is going on knows that what he does is morally indefensible.” That declaration, found on the first page of her book The Journalist and the Murderer, was a lightning rod for debate back then and truism though it may be, it’s lost none of its power to provoke since.

Avoid the Next 2008, Watch This Movie...

If you watch only one movie this year, make sure you buy and watch Inside Job. Understand the cause of the 2008 market meltdown. Who was involved and why it will happen again.

The interviews and charts alone are worth the DVD. But more important for your future is what has not changed and why the greed of a few will recreate the same problem in the future. If your clients lost money in 2008 you owe it to yourself to better understand what happened.

Buy Inside Job DVD now.

Prepare yourself for the upcoming workshop series on how to protect your clients assets now and in the future.

Download Additional Info.

What do you think will be done to avoid this happening again? Please add your comments above.

Additional Subscriber Only Content

The PDF file How Do We Avoid the Next 2008 From Happening? is available for subscribers to download.

If you are not a subscriber, you may receive a 14 day free trial at http://www.ActionSheets.com and be sure to select Lloyd Williams as referrer to have access to the Subscriber Only training and resources.

Drawdown - Prelude to the Myths of the Market

Over the coming weeks we will examine the Myths of the Market. A myth is "a widely held but false belief or idea." There are four major myths that negatively impact advisors and clients. We will examine each in detail. Until then take a moment to examine the drawdown on stocks and bonds. Are bonds really safer than stocks? And where do you go when neither is attractive? Question every investor should answer.

New CII 2.0 Workshop on March 17

Half-Day CII 2.0 Workshop The workshop will cover how to transition your business to a Counter Intuitive Practice. We will discuss the difference between typical investment practice and a Counter Intuitive practice. Why it is necessary today. How to present to your clients and prospects. We will also be introducing the current portfolio and tools and discussing the upcoming automatic upgrade to SIA Action Sheet. This will revolutionize your practice.

Do you want to:

-gather more assets? -spend less time managing the money? -focus more of your attention on creating advocates? -capture 100+ referrals a year? -create an auto-pilot business? -stop lossing clients money? -have a unique message in the marketplace?

If you answered yes to any of the questions above, you will want to attend.

Location: London, ON Time: 1-5 PM Eastern Cost: No charge Registration: Send email to office@lloydwilliamsinc.com with name, email, and firm for each person in your party

Note: Seating is limited to 30 participants. Register Early.

Details and driving directions will be sent upon registration.

Alpha and Beta

Most investors and advisors pursue alpha (performance) and the result is beta (risk/volatility). We should pursue the reduction of beta and the result would be alpha. If you don't lose money you don't have to make as much to get it back. A single significant loss like 1987, 1990, 1997, 2001, 2008 can eliminate all the performance of the proceeding years.

If you would like to reduce beta and achieve true alpha register for the upcoming Counter Intuitive Investing Workshop. For more information click here.

Counter Intuitive Investing - New Series

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8-Week Conference Call Workshop Series

Did you have negative returns in 2008? Do you want to protect your client's assets from future market volatility? Would you like to better manage the risk in your portfolios? Learn the Counter Intuitive Investing process that can help you avoid the large declines in stocks by using Relative Strength and Point & Figure Charting. Today's technology puts you back in control of your practice and gives you the ability to protect your client's assets.

Dates: Fridays starting January 8, 2010 for 8 weeks Time: 11:00-12:30 pm Eastern

To register for the workshop download registration form here and fax to 309-294-5519.

Advantages for your team:

  • No travel expenses
  • Entire team can participate
  • Actionable ideas
  • Twelve hours of material for less cost than a single consulting call
  • Easy to implement
  • Weekly feedback
  • Email access to Lloyd during the eight weeks
  • FREE 8-wk access to DorseyWright.com & SIACharts.com during the workshop

Outline:

  • Build a Counter Intuitive Practice in Today’s Marketplace
  • Powerful Risk Management Tools: Relative Strength and Point & Figure Charting
  • Prepare Prospects & Clients for Counter Intuitive Investing
  • Create Unlimited Trust and Introductions
  • Present a Unique Counter Intuitive Solution
  • Handle Questions and Objections
  • Be a Catalyst for Positive Change in the Lives of Clients
  • Build and Manage a Counter Intuitive Team

The eight weeks will allow you to gradually incorporate these concepts into your practice. For half the price of an airline ticket you and your entire team can participate in the Workshop and apply it to your practice.

What Previous Attendees Said:

“Just thought you’d like to know that the three IA’s who are working through your Counter Intuitive Investing program are more engaged and excited than I have seen them in their careers! They have the confidence and conviction that is infectious. One described it as “what he has been waiting for all his career”. They are excited to roll this out to clients and have no doubt that, along with the Relationship Conversation, they have the best offering in the city! I wish we could get all 37 IA’s this excited and engaged.” - DS – Branch Manager

"A quantum leap forward! I have been in the business for over 7 years now. In March I became a monthly coaching client of Lloyds, and since have joined the Counter Intuitive conference call series. As a technical analyst fan, I was ecstatic that Lloyd brought forward the system presented in the series. It makes sense, it is straight forward, and you can customize it to your own style. Once again Lloyd has provided massive value for my clients, my team, my business and my own personal goals. Nothing feels better than having crystal clear clarity for the operation of your business. Imagine building and running your business day to day and having the bandwidth to focus on what matters most; all the while having a system to manage your participation in the markets - which you do not have any control over. I highly recommend Lloyd's series for anyone who is committed to making a step forward." - SB

“I cannot say enough about the great help you have provided my team in terms of stressing the importance of the “Client Relationship”. However, your recent emphasis, via the Conference Call Workshop Series, dealing with the “Financial Relationship” has been awesome! I wish I knew this material long ago!” - DH

“We continue to be incredibly excited about the coaching, conference calls and the Point & Figure process you are introducing us to! Thank you.” - JR

“Great program, by the way! I am moving to change the way that I run my business and inherently the way we manage the risk of client investments. I do so agree that these times require new tools. Your program is very useful to me thus far!!” - PM

“Good class and we have at least one new item to add this week to help us to the next bigger step, thank you.” - DB

"This process is helping me answer some of the nagging questions my clients or I have had over the years, which were thrown into sharp relief in 2008. I can't see myself being limited only to traditional asset allocation and fundamental strategies for the future." - LK

Sign up to participate in what many are calling the “most valuable workshop in my career.”

Discounts available for early registration.

REGISTER NOW

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