Friday, July 29, 2011

Advisers deluge investors with advice over debt crisis

According to Reuters most financial advisers are holding a lot of hands this week. Many of their clients, with the horrors of the financial crisis so fresh, are getting scared by the possibility of a United States' debt default.

But while Americans may blame sleepless nights on their lawmakers, they can't complain too much about the range of advice they are getting from the financial community. If anything they may be getting overloaded. Using not only email, text messages, websites and phone calls, but all the social media tools like Facebook and Twitter, financial advisers have sought to preach the need for calm on a mass scale this week.

Indeed, if there is a deal in Washington to extend the debt ceiling before the U.S. government threatens to default it could go down as one of the most over-communicated financial non-events ever, even rivaling Y2K in 1999.

"It's my practice's position that we should be more disgusted by what is happening than fearful," said Scott Tiras, a senior financial adviser with Ameriprise Financial in Houston, who has has done his communicating with 650 clients mostly via mass email, spelling out his theories that this is a short-term event. "We believe that this too will pass but not necessarily without volatility in the short run," Tiras said. "We are not suggesting any major portfolio changes at this time," he wrote in an email to clients this week….

Read more at http://www.reuters.com/article/2011/07/28/us-debtcrisis-brokers-idUSTRE76R4WA20110728?feedType=RSS&feedName=PersonalFinance&rpc=43

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