In Brief: Doomsday Ads Called Deadly

CAMBRIDGE, Mass. — Wealthy investors are confident about the economy and the market, and wealth managers’ marketing should speak to that confidence, a Forrester Research survey report concludes.

Eighty-six percent of the 2,505 respondents — North American households with investable assets of at least $1 million — said they felt financially secure, up from 74% a year ago.

Forty-eight percent said they believed the economy would turn around soon, and 8% predicted a long recession.

Forrester conducted the survey in July and issued its report, “Winning the Affluent in a Downturn,” last week.

Ekaterina O. Walsh, a senior analyst at Forrester, said wealth managers using “fear-inducing” advertising are sending the wrong message. “Turbulent markets haven’t fazed” the affluent, she said.

Forrester further recommends targeting “the next wave of affluent clients.” It says that by yearend two million U.S. households will have joined the ranks of those with $1 million of investable assets.

“Grabbing them now and holding on to them will be easier than stealing them from another firm once they’ve crossed the threshold,” Ms. Walsh said.

The report also emphasizes retention efforts.

“Customers are less expensive to retain than to attract,” Ms. Walsh noted.

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