Right around this time you probably just reviewed your monthly statement, you are sitting there scratching your head saying; what the hell just happened. A lot of things that did not matter over the last year suddenly mattered. The Wall Street saying–”they take the stairs up and the elevator down” hits home right about now. What took months to make disappeared in days. On top of it all you probably panicked and sold at the wrong time in fear of another 2008 debacle that interwebs sold you on.
I’ve been in the financial industry for 18 years, seen a few cycles, dealt with many investors, worked with a ton of different characters, and seen every Wall Street product there is to see. Here are some the of the few things I have learned and believe.
1. Diversification is key, not only across asset classes but also across managers.
2. Chasing what was just hot and ditching what has been cold will burn you 9.9 out 10 times.
3. Consistency is the name of the game. Any monkey could beat the market in the short-term, over the long run it’s a different story. Check your expectations, realize and accept what is doable and what is not.
4. Market volatility is unavoidable. How you handle yourself during the inevitable volatile times will make a huge difference.
5. Hot stocks come and go, the Indices are here to stay.
6. Time is the most valuable tool an investor has.
I run a hybrid approach. My number one concern is the preservation of capital. A part of the portfolio is dedicated to taking advantage of the tendency of the market to go up over time. On the tactical side, we seek to maximize risk-adjusted returns over a full market cycle while providing better protection than your traditional portfolios. We do this by taking advantage of certain market structures and behavioral patterns that have been around for over 100 years.
Work with me. Investing money is the easy part, managing it effectively is the hard part, and that’s my job. Get yourself connected with someone who is passionate about the market and puts his clients best interest first.
If your accounts are not getting the proper representation or want a second opinion feel free to reach out, no obligation.