For (mostly) better or (sometimes) worse, we live in an instant information era. Part of this unfettered access to data is the ability to pull up weather forecasts in a matter of seconds through any device of your choosing. As the traditional televised news format struggles to find its footing in the modern media environment, I still find myself tuning in to the local news, especially the weather segment. As Millennials and Gen Z folks scoff at sitting through the antiquated long-form forecast, I must admit I’m entertained by the detail, nuance, and fascinating weather-related factoids a seasoned meteorologist can dole out.
Acknowledging there’s an entertainment factor to all of this, the weather professional’s job is to model, forecast and explain meteorological conditions so we can prepare accordingly. We count on these forecasts to have a high degree of accuracy so we can plan our outdoor activities, travel schedules, events, etc. but also acknowledge their reports are subject to rapidly changing conditions beyond their control, especially when it comes to longer-range forecasts.
A by-prodcut of watching televised forecasts is the emotional connection one makes between the weather and the meteorologist. Even the most beloved weather professionals can draw the ire of their viewers when outdoor activities get cancelled because a storm system moves through the area. We know meteorologists cannot control the weather, yet we feel better about them when it’s 75 degrees and sunny but not so much when the weather turns foul, especially if we’re planning something that’s dependent on favorable conditions.
This correlation also happens in the financial advice world. When the markets are humming along and accounts are growing, the client often views the advisor in a favorable light. When markets are down, the very same advisor can be seen in a more negative tilt. Financial professionals cannot control the fluctuating market factors but through fact finding, modeling, reviewing, and adapting, can prepare portfolios to handle a multitude of varying monetary conditions.
The past year or so has brought on some extreme conditions, both from a weather and financial standpoint. Weather conditions have unleashed record setting flooding, heat waves, and wildfires. Many broad market indices have endured double digit swings in both directions. The financial professional’s job is to maintain a disciplined approach through these headwinds and tailwinds, weathering financial storms and making every day feel like it’s warm and sunny.
Cheers!
-Steve H
Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor.
Member FINRA/SiPC
