In the battle between our emotional self and our rational self, there is no contest: Plunging share prices almost always unleash an all-too-human sense of terror in many clients. That leaves advisors with the unenviable task of trying to calm them and thereby save them from costly self-inflicted investment wounds.

How do you train investors to be less skittish about market declines, and instead see them as an opportunity? The key is to get clients to view stocks as having two prices: the price at which you can currently buy and sell — and the underlying fundamental value.

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