Markets move up and down — that’s a fact. Emotional reactions to those movements, however, are optional. But even the most analytical, financially literate clients are not immune to anxiety, fear, or regret. When emotions take hold, investors tend to lose perspective. They start zeroing in on recent losses, alarming headlines, or isolated data points rather than the big-picture goal or why they started initially investing.
To appease clients, financial advisors often respond with more information like additional charts, statistics, and explanations. Yet when a client is emotionally activated, more detail fuels the fire, further pushing the client toward the very thing that triggered them. As I’ve noted in previous blogs, it’s important for advisors to address clients’ emotional triggers, lest they manifest as risk aversion in portfolio design and undermine long-term returns.
That’s where chunking up comes in. This technique, drawn from cognitive psychology and widely used in athletic coaching, allows investors to reconnect with long-term reasoning, reduce emotional stress, and make decisions aligned with their goals rather than their fears.
What follows is a practical framework for financial advisors, supported by client–advisor dialogues, illustrating how to guide clients toward steadier thinking amid inevitable market swings.