Last Wednesday, I attended a presentation at which Randy Ambrosie of AGF Funds talked about what advisors tell him they hear from clients when they recommend deploying cash. Three words summarize the typical response: "Let's just wait".

That's absolutely consistent with what I've been hearing from advisors - as evidenced by the billions of dollars flowing into money market funds since the beginning of the year. So how should you counter when, despite your most persuasive arguments and compelling evidence to get off the sidelines, clients say "Not right now"?

I suggest you consider a three pronged strategy - validate, probe, commit.

1. Validate

The first step is to validate your clients' concern by saying something like "I can absolutely understand you wanting to stay on the sidelines right now. Many clients I talk to feel the same way".

This diffuses the tension that clients often feel about rejecting your recommendations and puts you and your client on the same side of the table - and also takes away the apprehension that they are about to be bombarded by more reasons that you're right and they're wrong. When you've made your best case and they still say "let's just wait" (which really means "no"), keep in mind that most clients don't want to be argued with - the chances of changing their minds are slim. Also remember that clients know that you have a potential conflict of interest in your advice and may not be entirely sure about your objectivity - advisors' compensation typically goes up when cash is invested and clients know this.

In summary, by telling clients off the top that it's okay to be concerned, you open the door to the next phase.

2. Probe

In this stage, you probe for the source of their concerns. Here's your chance to get a handle on what's really bothering clients - don't settle for just "I'm nervous about the markets", dig deeper to get at what's really worrying them. If clients say "the U.S. housing market", take the time to probe what exactly drives that concern - they may be reacting to a recent Business Week cover story on the U.S. housing meltdown or something they heard somewhere but only partly understand. If they express concern that the global financial system is about to implode or that the U.S. stock market may go the way of Japan's 60% decline since 1989, they may have been reading one of the guest columnists in the Globe and Mail Report on Business who is particularly gloomy about future prospects.

You want to focus on really listening and taking notes - take care not to interrupt. Once clients are finished, summarize their concerns with "Let me just be sure that I have this right". If clients have based their view on misinformation or a misunderstanding of what's happening, here's your chance to point this out. This is not about changing clients' minds - rather, by doing this you are fulfilling your role as a professional, to provide informed perspective. Just be careful not to be argumentative or have clients feel that you're trying to show off your superior knowledge.

At this point, you have two options.

You might make one final attempt at getting clients invested, tying back recommendations to their long term goals. You could remind them of offsetting positives and the history of quick rebounds after the kind of decline we're seen, perhaps recommending a partial deployment of the cash on the sidelines (say a quarter or a third) or going to a conservative option such as a balanced fund.

Or, bearing in mind that by going this route you risk antagonizing clients who feel you haven't really been listening and are simply making another pitch, you go right to the last stage of the conversation.

3. Commit

The final step is key - here you and the client agree to talk again in 30, 60 or 90 days (whatever is appropriate) and in the meantime exchange commitments.

You commit to monitor the situation and get back to the client if there is new information specific to their concerns. And they commit to reconsider their stance if the markets appear to be on track for a recovery (say up 10% or 15% from current levels or back to where they were in November) or if there is new information down the road that directly addresses their concerns.

By using this three step process - validate, probe and commit - you increase the chances that you and your clients will get past their indecision and help them get invested in a fashion that will let them participate when markets turn around.