Trust in Times of Crisis

Form follows function. This is not new to those in design or architecture. They invest significant effort in deriving form from purpose. However, when extended, form is also an underestimated factor for function in other areas.

Paul Volcker, former Chairman of the U.S. Federal Reserve (1979–1987), successfully tamed the rampant inflation of the 1970s and 1980s. When asked about his job, he once dryly remarked, “Well, you have to get interest rates roughly right, and you have to look like you know what you're doing.”

A great example of how attitude is part of the impact.

Responsibility instead of alarmism

I long underestimated this. It was always important to me to highlight all possible developments, including the end of the world. Until I realized it works like a doctor’s visit, where, due to a headache, you hear: “There's a 1% chance it’s a tumor, and if so, you'd have just a few weeks left.”

When people turn to someone in uncertain moments, they are seeking affirmation. They want reassurance that a path can be found together. Someone who always points to the very unlikely worst-case scenario easily avoids responsibility. This is exactly when it is most needed.

Where others invoke disaster, those in positions of responsibility must offer confidence. My investor friend Tom from Hong Kong summed it up during the challenging year of 2022: “Never scare the horses. Customers need to feel we have absolute confidence at times like these, or they’ll lose confidence.”

This loss of trust is especially painful in crises like 2008. During the depths of the bear market, many sell at the lowest prices, realize significant losses, and then only watch as the recovery unfolds.

We aim to provide trust to our clients in times of crisis and guide them until the danger has passed. We’ve been doing this for over 100 years, and this journey never ends.