From the Desk of Jim Eccleston at Eccleston Law Offices:
According to a recent study in Health & Social Work, the event of sudden and dramatic personal financial loss can directly result in post-traumatic stress disorder (PTSD). People suffering from PTSD feel as if the traumatic event is still occurring or will reoccur and the psychological distress intensifies at exposure to external cues that resemble any aspect of the traumatic event. And this applies to both clients and financial advisors, when their financial security is undermined.
During financial crisis, the well-being of financial advisors usually faces double threats not only to the security of their careers, but also to their own portfolios. Advisors normally make the same financial decisions and use the same strategies for their own portfolios as well as for their clients’ portfolios, which could suffer double major losses in both portfolios during financial crisis. In addition, calls from frightened, disgruntled and often hostile clients who blamed the advisor add to this stress.
It is common for PTSD sufferers to avoid activities, places or people that arouse recollection of the trauma, so avoiding the office and looking for a career change is a common outcome of PTSD. In addition, the traumatized advisor may avoid contacting clients, anticipating a negative, hostile conversation.
The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.
