Your client, Bob Miller's long-term financial goal is to retire comfortably in 23 years at age 65. You have conducted a robust risk profile analysis on him and have determined that he is an aggressive investor. Miller insisted on allocating a sizable portion of his portfolio to oil and gas stocks, given his 30 years of work experience in the industry. Recent volatility in oil and gas stocks is exerting a profound emotional toll on Miller, who has complained of watching business news channels on television and being consumed with fear as a result of the steady stream of pessimistic forecasts by commentators. Miller told you in a recent phone conversation that he feared financial Armageddon would be inevitable. This contradicts his statement in his client profile questionnaire that he would not change strategy simply due to short-term losses. You hope that Miller will respond favourably to calm reassurance and rational analytical discussions but fear he will pull his money out of equities entirely.

How should youadvise Bob Miller, considering Miller's emotional state of mind?Should you move him away from volatile investments? If so, what is a suitable strategy? Or should you advise him to stay the course. If so, how would you convince him to do so? (8 marks)