Practice Good Investing Habits

When markets are uncertain it is easy to forget that the equities in your portfolio are comprised of companies that produce basic products that are integral to our activities of daily living: toothpaste, soap, shampoo and gas. Regardless of market performance, we purchase and use these products on a regular basis. The success of a portfolio is not necessarily reliant upon big ticket items such as the products of Apple or BlackBerry.

At some point in the history of each index, there have been periods of negative returns. Such periods of negative returns do not mean that the market was permanently negative, only that it was part of a dip. It is important to note that our reaction to such negative returns may do you a disservice.

Key Points to Remember
  • No one can predict the future, not even a portfolio analyst, manager or TV commentator.
  • The perfect investment does not exist. All investments have some measure of volatility and it is our job to understand them.
  • Do not get caught up in “short-term” events or have a knee-jerk reaction to world news. What is of concern today will eventually pass and even out.
  • Pain from loss is greater than pleasure derived from gain. It is impossible to eliminate loss, even renowned investors experience it; we must manage the source of such loss and adjust our portfolios on a pro-active basis rather than on a reactive one.
  • Maintain a well balanced investment approach. Invest with the mindset that in the long-term, well balanced portfolios will likely yield positive results.

Good Inesting Habits

  • Be Pro-Active. Do not react to negative market events. Ensure your portfolio is balanced to withstand market volatility.
  • Have a Goal. Have a financial plan that will meet your needs and goals.
  • Prioritize. Attend to the most important things first, not the urgent things. Urgency comes from neglect.
  • Think Positively. Ensure your portfolio is balanced to withstand market volatility. Do not panic and make poor decisions as a reactive response to market dips.
  • Seek to Understand, then Seek to be Understood. Understand how your portfolio is structured. It is your money and you need to be accountable for its growth and management. Diagnose before prescribing: diagnosis requires honest and open discussion.
  • Synergize. Ensure your portfolio is not overlapping, but that its components are working together to ensure financial success. Simplify your holdings and place them with one trusted and proven institution. One stop shopping supports a better overview of your finances.
  • Review, Review, Review. Meet with your Advisor on a regular basis. Ensure your Advisor and your portfolio are working together to achieve your financial success.

We will be happy to meet with you to evaluate, review and discuss any aspect of your financial plan. Contact our office today!

Securing your Family's Future

Following the advice of a trusted advisor is shown to be a significant factor in building wealth and achieving investment success. Our team can provide sound advice and a Personal Wealth Management Strategy™ to guide & assist you & your family at any stage of life.