By Steve Sanduski, CFP®

Huh? Shouldn't you try to avoid controversy and not ruffle any feathers? No. In fact, you need to have a strong opinion and have people disagree with you in order to grow your business.

American Idol’s season one winner, Kelly Clarkson is the latest example of somebody who shared her opinion, ruffled a bunch of feathers, but laughed all the way to the bank as her CD sales soared. On December 28, Clarkson tweeted that she loved Ron Paul and would vote for him if he's the Republican nominee. Whoa! Clarkson was attacked on Twitter and the blogosphere for her stand.

But, guess what happened next? Sales of her latest CD soared as she picked up new fans. In fact, sales for the CD jumped more than 400 percent in a 24-hour period on Amazon.

What does this mean for you? As an advisor, don't be wishy-washy. Take a stand on important issues such as the budget deficit, the euro crisis, Washington politics, and how to grow our economy. Sure, you may "ruffle a few feathers," but you'll get attention and gain new clients and referrals who agree with your stand and want to work with someone who thinks the same way they do.

By John Mason
Manager, Information Technology
Peak Advisor Alliance

“The pen is mightier than the sword.” - Edward Bulwer-Lytton ,English author, 1839

Fast-forward one hundred fifty years or so and the modernized quote could be: “The media is more influential than weapons of mass destruction.”

We all get suckered in, whether we realize it or not. Perception is reality and the world is full of seemingly credible sources of information that aim to shape our perception. But, for whose benefit?  With the markets being so erratic and the resulting emotions that seem to be driving investment activity, one should acknowledge and consider the impact that media has on the world economy.

We've seen how the world has dramatically shrunk with the advancement of telecommunication technologies. Take the Gulf and Iraq wars, for example. Media coverage drew the average person into a new arena of war perception by putting them on the front lines and in the military planning rooms, so to speak. The impact played a large part in shaping public support/condemnation of those actions. In many cases, it could be argued that media coverage actually worked against the coalition’s efforts and what they were trying to accomplish. In fact, in some cases, it actually put military personnel in harm’s way.
 
Now, consider media coverage as it pertains to the global economy. At any time, people can turn on CNBC or navigate to their favorite financial website (e.g., Yahoo Finance) and get real-time updates on markets, etc., complete with "expert" opinions. But, haven't people preached for a long time that you shouldn't "watch" the daily markets? Doesn't long-term performance matter the most? It would seem logical that once you get people focused on the short-term activity, the standard rules of rational investing go out the window.
 
The bottom line is that the media is playing a large hand in shaping our perceptions, opinions, and, thus, our behaviors. This is in large part done via our emotional connection/reaction to what is being communicated through mainstream media. But, we must consider that the media does not exist as a public service. It exists to make money itself. Thus, the media will cover whatever it feels will draw interest. In most cases, this means it will cover issues that play to people's fears and other "negative" emotions. If you need proof, tune into your local nightly news. "Balanced" journalism only goes so far; ultimately, the opportunity to make money wins out.
 
So, in summary, freedom of the press, while one of our country's greatest assets, is also one of our country's greatest liabilities. Personally, I think our country is going through a major adjustment/re-acclimation phase, though not everyone realizes it yet. The media seems to be promoting irrational decision-making, whether intended or not. Thus, we are being forced to learn how to operate and thrive amidst the evolving challenges the media presents. For a financial advisor, this means they need to find effective ways to offset the potentially poisoning affect the media has on their clients’ perception of what they should do with their money.

The good news is: now you know and “knowing is half the battle.”