It would be irrationally imprudent to suggest that the financial tsunami of 2008-09 is starting to fade from clients’ memories and that a new era of investment optimism is upon us. The wounds suffered by many investors were bone-deep and their pain — real or phantom — will persist for years.

A clear consequence of what has become known as the Great Recession is that the psyche of Canadians — and others, of course — has been irrevocably altered when it comes to their money and its management. And although most clients by now have accepted that “it is what it is,” many continue to hunger for insight into what happened and why. They also crave confidence that their current strategy makes sense in the “new normal.”

Financial First Aid for Canadians: Stop the Bleeding, Start the Healing and Get Your Portfolio on the Road to Recovery was written to explain the economic meltdown and, more important, to suggest remedies for longer-term peace of mind. In fact, the book goes further by providing brief descriptions of most things financial so that readers can be better informed in discussions with their financial advisors.

This leads to another significant point: the authors are a trio of financial services industry veterans, and their case for the importance of working with a professional financial advisor makes the book a very suitable gift for clients who will benefit from a fundamental understanding of financial instruments and the way the industry functions.

The book follows the medical analogy from start to finish. Part 1 is Diagnosis; Part 2 is Prescriptions and Part 3 is Staying Healthy. Here are a few of the key messages from each section:

> Part 1: Diagnosis. This section begins with a historical perspective that spans the range from the Great Depression to the Bernie Madoff scandal. The bottom-line message is that investors must take some responsibility for their results by being informed and remembering that at the end of the day, they ultimately need to be in tune with their own emotions and needs if they are going to make intelligent and informed investment decisions.

> Part 2: Prescriptions. This is the book’s “educational” section. It begins by making a strong case for most investors’ need for professional help from a qualified financial advisor. The various types of advisors — planners, brokers, fee-based, commission, etc. — are described; and although the au-thors’ obvious bias shines through, an important point is emphasized: that investors also have responsibilities in a client/advisor relationship — those being to be open, honest, informative and involved.

The rest of this section walks through the theory of asset allocation, asset class by asset class, security by security. Nothing is explored too deeply, but all the familiar technical stuff around the Sharpe ratio, the efficient frontier and standard deviation is simply described, as are the various types of investment risk.

The differences among cash, fixed-income and equities investments, in all their forms, are laid bare, and a strong case is made for active vs passive management.

This section concludes with an exploration of insurance-based products such as segregated funds, including those with guaranteed minimum withdrawal benefits, and annuities.

> Part 3: Staying Healthy. The final part of the book addresses diverse topics, starting with a chapter on the importance of researching specific companies or funds for intelligent investment decision-making, then jumping to a description of the various types of advisors an investor might engage, depending on the investor’s needs and psychographics and how those advisors get compensated for their work.

From there, the book proceeds to analyzing retirement planning needs and selecting appropriate benchmarks against which to measure progress. Finally, it, curiously, jumps to the importance of having an investment policy statement.

The book strikes me as a “brain dump” by three very knowledgeable players; as such, it certainly has value. Although the book would have benefited from better editing for flow and avoidance of repetition, that should not diminish its value.

Parts of this book are clever and witty; others, erudite and scholarly. It should appeal to a wide range of readers, as it’s a compendium of definitions, descriptions, strategies and tactics that will enlighten and entertain. For advisors, this book could be that gift that says to clients: “I want you to be informed so that our work together will be more meaningful and collaborative.” IE