Investors are smart.

Yes, I know you know that.

But even so, when the pressure’s on, deadlines are running down, and Mr Market isn’t behaving as he should be…

It’s easy to forget that they know just as much about what’s going on in the market as you do, and quite possibly more about your business too.

Still, this doesn’t stop companies overthinking and trying to frame their communications in ‘the right way’ so that investors think one thing when something else entirely is going on.

Truth is, this only serves to annoy investors and make them feel like you’re pulling the wool over their eyes.

Be clear, I’m not talking about intentionally misleading investors here either. There’s a subtle difference to what I’m talking about.

Let’s say that market sentiment is bearish.

Broadly, stocks are falling, and people are getting panicked.

It’s not nice, but you know that your business is fit to weather the storm. In fact, despite what’s going on in the broader market, you’ve had a lot of good news recently and things are looking up.

Sure, the bear market might have some impact, but it’s only ever going to be short term, because, quite rightly, your business is thinking long term.

That’s all good.

But here’s the problem…

When we’re told that everyone’s panicking and the market is bearish, ‘desperate reassurance mode’ kicks in and people run around saying we need to reassure investors at all costs.

To some extent, that’s right. You do.

But here’s where the subtly kicks in.

Reassurance doesn’t mean redacting

When you hear the word reassurance, it’s often easy to think denial.

Rather than accepting the problem and tackling it head on, we just deny it exists.

This is human nature on some level. It’s not just something we do in marketing communications.

But still, when it comes to talking to investors, when we seek to reassure, what we actually end up doing is denying.

What bear market? we wonder.

It’s just a blip, we laugh.

Ignore all that noise, we plead.

Yes, we have the best intentions. We don’t want investors to worry. But denying that problems and challenges exist does not provide any reassurance.

And, as I say, investors are smart. They know what’s really going on in the market. They know if a recent press release means bad news. They are just as aware of the bigger picture as you are.

This is why it’s important that you are always open and honest with your investors.

It’s why, even when you’re facing a challenge in your business, or if Mr Market is misbehaving, you should talk about it openly, calmly, and always refer to your original plan, your long-term vision.

If you don’t have an original plan, or a long-term vision to refer to, or maybe you’ve never taken the time to get it down on paper, we might be able to help on that front, as well as helping you to communicate in an open and calm way with your investors.

Just get in touch if you’d like to talk more about that.

But in the meantime, when it comes to the way you communicate with investors, in good times and in bad, whatever you do: remember to never underestimate them.