Hello,
CFA claims we need to distinguish between fact and opinion when communciating with clients.
However, I am wondering which information specifically needs to be distinguished between fact and opinion when communicating with clients?
By their logic every single sentence (revolving around communication with clients) would need to be distinguished between fact and opinon
“GDP growth in 2016 was 3%” (Fact)
“GDP growth is likely to be be 2% and 1% for 2017 and 2018, respectively.” (Opinion)
Another example:
“Enron Corp. bankrupted because bad commercial management, so energy stocks price are going to increase more than 10% in the short-term”
First, Enron didn’t bankrupt due bad commercial management, but corruption. So, if you don’t know a subject thoroughly, just express your opinion and differentiate it from a fact statement. For example “I think that…”, or “In my opinion…”, or even “We do believe that…”.
Second, you can’t assure future performances, but express your personal believe or opinion: “We expect that energy stocks will go up, our advice is a buy”.
Aaand yes, every single sentence from your mouth will need to be differentiated between fact and opinion!