Stocks closed mostly higher in July. Tech shares, including AI stocks, which had been a bellwether for much of the year, retreated in July, dragging the Nasdaq to its worst July performance since 2014. The remaining indexes fared better, with the Russell 2000 enjoying its best month since December 2023 and its best July since 2022. The Dow also had its best month of the year. Most of the market sectors advanced in July, with the notable exceptions of communication services (-4.5%) and information technology (-2.4%). Real estate (7.5%), financials (6.0%), and utilities (5.9%) outpaced the remaining sectors.

Inflationary data showed price pressures stabilized in June. The 12-month interest rates of the Consumer Price Index and the Personal Consumption Expenditures (PCE) Price Index declined. Prices for commodities that are prevalent for most households, such as food at home, gasoline, new and used motor vehicles, and apparel, changed very little over the year. The PCE price index, the preferred barometer of the Federal Reserve, slowed to 2.5% for the year ended in June (see below) as it inches closer to the Fed’s 2.0% target inflation rate.

How Financial Advisors Can Build and Maintain a Strong Brand

Building a strong, appealing brand as a financial advisor is fundamental in attracting and retaining clients. Not only does it set you apart from competition, but it helps build trust and showcases your value to clients and prospects. Defining your brand should be the first step before diving into marketing efforts like podcasts, videos, and email marketing. We discuss three key steps to develop your brand to help grow your business.

Craft and Utilize Consistent Messaging

• Define your brand identity: Determine your mission, values and what sets your services apart. Whether you have specialized knowledge of a service, work with a particular niche, or offer a unique approach, craft messaging around these specific points to showcase your specialties.
• Utilize client testimonials: The SEC Marketing Rule allows financial advisors to utilize client testimonials in their marketing. Showcasing satisfied clients and incorporating testimonials into your messaging and marketing efforts can help enhance your credibility and convert prospects.
• Develop educational content and marketing materials: Utilize your messaging and testimonials to create marketing collateral and educational content surrounding your unique services, niche, or approach. These materials should be visually appealing and easy to understand, positioning you as a knowledgeable financial advisor.

Build a Website That Converts

• Communicate your value proposition: Your website is often the first place prospects visit when deciding if they want to work with you. The content included in your website should reiterate the messaging you developed and showcase your unique value proposition. A clean, user-friendly website that showcases your credibility plays a major role in maintaining a strong brand.
• Implement strong CTAs: Implementing call-to-action buttons throughout your site will help convert users. A primary call to action button typically encourages users to schedule a call for those who are ready to take the next step. However, a secondary call to action is an opportunity to provide value to those who are not yet ready. This can include downloading educational content or subscribing to your newsletter.
• Monitor and adjust: Make sure to monitor your traffic to ensure your website strategy is effective. For example, tools like Google Analytics will assist you with discovering how users find your site, which pages they are drawn to, and if you are successfully reaching your target audience.

Leverage Social Media

• Determine the appropriate platform(s): Pew Research’s 2024 Social Media Fact Sheet offers insight into which major online platforms are used based on demographics including age, gender, income, and education. Research which social platforms your target audience is using and focus on growing your audience and producing content specifically for those outlets.
• Create valuable content: Although social media is often a resource to drive traffic to your website, consider serving as a resource to your audience with valuable content surrounding the messaging you created. Using “zero-click content” helps increase engagement and reach while successfully showcasing your brand.
• Engage with your audience: Make sure to engage with your audience by responding to comments and partaking in relevant conversations. This helps boost your visibility to reach more of your target audience and can improve your brand reputation.

Building and maintaining a compelling brand is the first step to successful marketing efforts. Putting time and effort into these steps will help enhance your professional image and assist with your long-term success.

Welcoming Mitch Mellen!

Mitch Mellen is our new Regional Vice President, covering Michigan, Ohio, and Indiana. With over 30 years of experience in the wealth management sector, Mitch brings a wealth of knowledge from his roles in executive management and advisor-facing positions at some of the nation’s top financial services organizations.