Executive Summary
During periods of market volatility, it's common for financial advisors to receive calls from clients who are nervous about what a steep market decline might mean for their portfolio and long-term financial goals. In these moments, an advisor's first instinct might be to take a logic-based approach – citing long-term market trends and encouraging the client to stay invested. But even when a client agrees with the reasoning in the moment, the anxiety often lingers. Without the opportunity to fully express their emotions and engage in their own reasoning, clients may walk away feeling unconvinced – only to call back again a few days later, still uneasy.
While it's natural to want to 'fix' a client's fear, the most effective conversations often aren't about solving their emotions – they're more about helping clients move through them. Advisors can support this process by creating space for clients to articulate what feels hardest, process their uncertainty without feeling dismissed, identify what would help them feel more in control, and reason their way toward clarity – all at their own pace. Instead of delivering answers too quickly, the goal is to build connection and help clients regain a sense of agency.
Research on self-persuasion shows that people are far more likely to believe in – and act on – conclusions they reach themselves. So rather than reassuring clients with logic alone, advisors can guide them through reflection: inviting them to revisit past challenges, express what they're thinking, and imagine how they'll feel about this decision in the future. This allows clients to hear their own words, affirm their own reasoning, and reinforce their own confidence – which is often more powerful than hearing it from someone else.
Importantly, logic still has a place in the conversation – just not at the beginning. Once clients have had space to express their emotions and think through their concerns, they're often in a better position to hear and engage with logical information. At that point, charts, data, and historical examples can be incredibly helpful – not as a rebuttal to the client's fear, but as a useful resource to support their own decision-making process. Framing this information as a tool, rather than a correction, can reduce resistance and increase its impact. One effective approach is to ask permission before introducing data ("Would you like to look at some historical trends to put this in perspective?"). When clients are invited into the conversation – and feel heard and respected – they're far more likely to see the information as empowering rather than dismissive.
Ultimately, the key point is that by following a sequence of emotion first, reasoning second, and logic third, advisors can help clients feel more grounded, confident, and committed to their financial plan. And when clients hear their own words and draw their own conclusions, they walk away feeling less stuck – not because their advisor told them what to do, but because they arrived at the answer themselves. And in times of market volatility, helping clients find that kind of self-driven clarity may be the most powerful reassurance of all.
In times of market uncertainty, many financial advisors have had some version of the same experience: A client calls, worried about the unsettling headlines or a sudden drop in their portfolio. And now they're anxious and looking for reassurance. So the advisor does what they do best – responds with data. The long-term market trends, historical recovery patterns, and all the logical reasons why staying invested still makes sense.
And the client nods. They might even say, "That makes sense." But when the call ends, the anxiety lingers. A few days later, they might call again – still feeling unsure, or even ready to pull their investments altogether.
This dynamic is especially common during periods of real, sustained market decline and volatility – when client concerns aren't just about headlines, but about watching their portfolios quickly lose value in real time. And what makes this situation even more challenging is that the usual tools – charts, stats, and sound reasoning – rarely help as much as advisors expect. This is because fear isn't logical.
When clients feel anxious, their brains aren't prioritizing data – they're prioritizing emotional safety. And in those moments, facts alone rarely move people to action. What many clients need most is something that goes deeper than a summary of facts and statistics – what they truly need is a way to process what they're feeling and regain a sense of control.
Why Logic Isn't Enough – And What Clients Actually Need Instead
When the brain perceives uncertainty or threat, it prioritizes emotional reactivity over abstract reasoning. In those moments, clients are feeling before they are thinking. Their brains register stress before logic has a chance to kick in. When uncertainty is high – especially when clients are watching their portfolios drop – the need for emotional safety overrides everything else, including the ability to process data. A well-argued fact might be true, but it won't reduce stress on its own.
This is why a client can agree with market data in the moment but still feel uneasy later. Their rational mind might accept the facts, but their emotional brain isn't fully convinced. Instead of leading with logic, advisors can often help more by guiding clients through their own reasoning processes. Not only does this give the client a stronger sense of clarity and calm – which is what the advisor wants – it also makes them less likely to spiral or seek constant reassurance during volatile times.
Clients Don't Just Need The Right Answers, They Need To Discover It Themselves
Most people don't change their minds because someone else gives them the right answer. They change their minds when they reach a conclusion on their own. Research on self-persuasion shows that when people actively participate in reasoning through a decision, they're far more likely to believe in it – and act on it – than if they were simply handed the information.
This means:
- When advisors provide only logic, clients may nod along but remain unconvinced; and
- When advisors ask thoughtful questions, clients engage in active reasoning – which builds conviction.
Consider the difference between these two approaches:
- Logical reassurance: I know market volatility feels unsettling, but historically, staying invested leads to better outcomes.
- Guided reasoning: If you were to step back from the headlines for a moment, how do you think you'll feel six months from now? Let's revisit another stressful time in the past – what does looking back help us realize now?
The first statement offers accurate information, but it can feel dismissive and invalidating. Voicing fear is vulnerable, and when someone jumps too quickly to "That's not even going to happen" or "Historically…." the client might feel brushed off. They might even think, "Well, I guess I won't bring that up again – clearly, this conversation isn't welcome."
The second statement is very different. It invites the client to pause, reflect, and process their thoughts in a way that feels personal and relevant. When clients hear their own reasoning out loud, it tends to stick – far more than any fact sheet or data chart ever will. It's validating. It's curious. And it provides the emotional space needed for true decision-making.
The Best Financial Conversations Are About Connection, Not Correction
It's natural for advisors to want to fix a client's fear—to offer the perfect explanation, the best plan, the most airtight reasoning. But the most effective conversations aren't about fixing emotions. They're about helping clients navigate them.
Clients don't just need answers. They need:
- A space to process their uncertainty without feeling dismissed.
- A way to move from emotional reaction to thoughtful reflection.
- A conversation that helps them feel more in control – not just more informed.
Instead of focusing solely on delivering solutions, it can be more powerful to focus on creating connection. When clients feel truly heard, they're far more likely to trust not just the plan – but their own ability to follow through with it.
Why Reasoning Is Social, Not Logical
It's easy to assume that reasoning is about arriving at the correct answer – that logic and evidence lead people to good decisions. So when a client struggles to act rationally or resists sound advice, it might seem like they simply haven't understood the facts.
But research suggests that's not how reasoning actually works.
Most of the time, people don't reason to find truth – they reason to justify their choices to others. This is the central idea behind the Argumentative Theory of Reason, developed by cognitive scientists Hugo Mercier and Dan Sperber, authors of "The Enigma of Reason". Their research suggests that reasoning didn't evolve to help individuals make better decisions in isolation – but to help them explain and defend their decisions within a social group.
This has major implications for financial planning conversations. If reasoning is fundamentally social, then logic alone won't ever be enough. Clients need space to engage in their own reasoning process – and to test the advisor's reasoning – before they can truly commit to a decision.
Working With Confirmation Bias, Not Against It
The Argumentative Theory of Reason helps explain why clients don't always take action, even when they agree with the advice. For example, when an advisor makes a perfectly logical case for buying the dip or staying invested, and the client still wants to bail – it's not because they don't understand. It's not that they don't trust the numbers. It's that they haven't had a chance to articulate the reasoning for themselves.
The human brain is wired to test, challenge, and defend arguments – especially when emotions are high. When people are presented with fully formed conclusions, they instinctively look for counterarguments.
This ties into confirmation bias, which is often seen as a flaw in human reasoning. Daniel Kahneman and Amos Tversky – pioneers in behavioral economics and the researchers behind Prospect Theory – framed it that way: People look for information that confirms what they already believe, and that can lead us to mistakes. But Mercier and Sperber offer a different "yes, and…" view to Prospect Theory – the idea of building on existing perspectives rather than discarding them. In the Argumentative Theory, confirmation bias is recast as a feature – not a bug. It helps people maintain internal consistency in their beliefs and decisions. People don't seek confirming evidence because they're irrational. They do it because their brains are wired to preserve coherence in how they see the world.
This is why a client who hears, "The market always rebounds in the long run" from their advisor might respond skeptically. But when the same client says, "I guess the market has come back every time before", it feels completely different. They've reached the insight on their own terms – which makes it more convincing.
Advisors don't need to fight confirmation bias. Instead of reinforcing fear-driven reasoning, they can ask questions that help clients confirm more constructive narratives and reinforce a perspective supporting long-term confidence.
For example:
- Instead of saying, "Market downturns always recover", ask, "Have you seen downturns like this before? How did they play out?"
- Instead of saying, "This is just short-term noise", ask, "How does this moment fit into the bigger financial picture you've built?"
By prompting clients to reflect, advisors help them reason their way toward confidence, rather than feeling like they're being asked to override their instincts.
Asking, Not Telling: How Advisors Can Support Reasoning, Not Override Instincts
If reasoning is social, then financial planning conversations should feel less like a download of information and more like a collaborative thought process.
This is where asking the right kinds of questions makes all the difference.
Instead of presenting a prepackaged explanation, advisors can invite clients to engage in their own reasoning process by asking:
- What do you think this market period reminds you of?
- If you were giving advice to a friend in your position, what would you say?
- If you look back on this decision a year from now, what do you think will be most important to you?
These kinds of questions do two things. They shift the client from passively receiving advice to actively processing the decision, and they also make the client's own reasoning the center of the conversation – helping them feel ownership over the outcome.
When an advisor presents a logical argument, a client's instinct is often to test it, challenge it, or find the counterpoint. But when a client reasons through a decision out loud, they are more likely to reinforce their own thinking rather than look for reasons to resist. A client who talks themselves into staying invested is going to feel more committed to the decision than a client who was simply told it was the right thing to do.
Six Questions To Help Clients Feel Less Stuck In Uncertain Times
When clients are anxious about the markets, their financial future, or an uncertain economy, it's tempting to try to calm them with facts. But as discussed earlier, logic alone rarely settles fear. Clients need more than numbers – they need a way to process what they're feeling and regain a sense of control.
That's where good questions come in. Instead of trying to convince clients to feel better, advisors can guide them through their own reasoning process. The right question can shift a client from emotional reactivity to reflective decision-making – helping them feel more certain in uncertain times.
In the current environment – where market losses are real, not just feared – these questions can help clients process what's happening and find their footing.
Question 1: When you think about this concern, what's the hardest part for you?
When clients express financial worries, their immediate concern isn't always the full picture. Fear often disguises deeper emotions – like loss of control, uncertainty about the future, or even old financial regrets resurfacing.
For example, a client might say they're worried about the recent market downturn, but what they may really be feeling is anxiety about approaching retirement, seeing their portfolio drop, and fearing they've missed their chance to retire securely. Another client's concern about inflation might reflect a deeper fear of not being able to support their family the way they'd hoped.
This question encourages clients to pause and reflect. Instead of jumping into problem-solving, it helps them name what feels most difficult. And naming the hardest part often shifts the conversation from vague anxiety to something specific and addressable.
Question 2: What would make you feel more in control right now?
Uncertainty makes people feel stuck. This question helps clients shift from passive worry to a sense of agency by identifying what would help them feel more stable.
- Would reviewing their financial plan help?
- Would setting up a regular check-in schedule ease their anxiety?
- Would focusing on long-term goals instead of daily headlines make a difference?
This question helps clients focus on what they can control instead of spiraling over what they can't. It often leads to small, tangible actions that bring emotional reassurance.
Question 3: Have you faced uncertainty like this before – in finance or otherwise? How did you handle it?
When people feel stuck, they tend to forget their past resilience. This question helps clients remember that they've navigated difficult situations before – and handled them well.
Whether it was a career shift, an economic downturn, or a personal financial challenge, reflecting on past uncertainty reminds clients of their capacity to adapt and make sound decisions under pressure.
This shift in perspective reframes the situation. Instead of seeing the current situation as uniquely daunting, they begin to view it as just another challenge they're capable of managing.
Question 4: If you had to explain this decision to a friend, what would you say?
When clients are stuck, they often ruminate without ever fully articulating their thoughts. This question prompts them to externalize their thinking – often bringing greater clarity in the process.
Encouraging clients to explain their perspective as if they were advising a friend does two things:
- It helps clarify their own perspective, which often leads to a more balanced, thoughtful outlook.
- It creates emotional distance from the situation, making it easier to think logically instead of reactively.
This self-persuasion technique is a powerful way to help clients reach a conclusion they feel confident about.
Question 5: Looking back on this moment in the future, what will you be glad you did?
Fear tends to shrink time horizons. When clients are anxious, they often zoom in on what's happening right now and lose sight of the bigger picture.
This question invites them to zoom out. By imagining themselves in the future, they naturally reconnect with their long-term values and goals. It also reduces the emotional intensity of the present moment by reminding them that this fear – like past fears – won't last forever.
Question 6: What's the smallest step you could take today that would help you feel better?
When fear takes over, clients often feel paralyzed. Decisions seem overwhelming with high stakes. This question shifts the focus to small, manageable actions.
- Maybe it's choosing not to check the markets this week.
- Maybe it's reviewing a budget or having another check-in conversation to feel more prepared.
- Maybe it's simply having another conversation in a month before making any changes.
By identifying a single low-pressure step, clients regain momentum. They feel less stuck because they're moving forward – even if it's just in a small way.
When To Bring In The Data: Why Logic Works Best Later In The Conversation
While emotional reasoning is the first step, this doesn't mean logic and data have no place in the conversation. Facts, charts, and historical perspectives can be incredibly helpful – just not right at the start.
Once clients have had space to process their emotions and reason through their thoughts, they're often in a much better place to hear and accept logical information. Instead of feeling like data is being used to dismiss their concerns, they're more likely to see it as useful context for decision-making.
This is especially true in moments of real market stress – when clients may feel raw or vulnerable from watching their portfolios drop and need space to recenter before absorbing anything analytical.
That's why it can help to ask for permission before bringing in logic. For example:
- Would it be helpful if I showed you a chart of how markets have recovered from similar downturns?
- Would you like to look at some historical trends to put this in perspective?
- I have some data that might help provide clarity – would you be open to going through it together?
When advisors ask these kinds of questions, clients are far more likely to say yes – because they feel heard, respected, and in control of the conversation. And by following that sequence – emotion first, reasoning second, logic third – advisors can help clients feel more grounded, more confident, and ultimately, more committed to their financial plan!
Uncertainty isn't going away. There will always be moments when clients feel stuck, anxious, or unsure about what to do next.
But clients don't need perfect answers. What they need is space – to think out loud, to process their fears, and to regain confidence in their own decision-making.
Instead of offering more logic, advisors can ask thoughtful questions that guide clients through their own reasoning. When clients hear their own words, their own clarity, and their own conclusions, they walk away feeling less stuck – not because their advisor told them what to do, but because they arrived at the answer themselves. And in times of market volatility, that kind of self-driven clarity may be the most powerful reassurance of all.
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