Dr Quintin Rayer discusses how even though markets regularly have periods of falling prices, financial professionals seem to focus on the upside, directing relatively little effort towards spotting the next market crises. Equally, little emphasis seems to be placed on discussing the potential for negative outcomes with clients, especially prior to investment. This raises questions about the awareness of the regularity of market crises amongst financial practitioners as well as (despite difficulties in anticipating market crises) their role in forewarning clients of potential risks when markets are highly valued.
Q G Rayer (2018), Market crises: should we discuss them more – including with our clients? CISI, The Review of Financial Markets, issue 16, p66-69, 16th March 2018, Q1 2018.