Reflecting on a Turbulent Year: Diversify, Stay DisciplinedCliff Broetz, CSA, Senior Wealth Advisor, Leader Strategic Development
This past year the markets fluctuated again and again. After years of low volatility, this year saw lots of volatility, especially towards the end. We’ve written about this recently, and believe it’s important to go back to our core thesis: Markets work.
Markets are Unpredictable Short-Term
The uneasy part of the market is that no one knows where it will go short term. There are many articles in the media telling you which way it’s going to go and when. That you should DO something.
We think they’re lying. They’re playing to your fears and emotions—or they’re trying to sell a course—or they’re trying to sell a solution. The reality is, they don’t know where the market is going to go. The problem is that every investor has a long-term goal, but they still keep score every inning.
“Time is free, but it’s priceless. You can’t own it, but you can use it. You can’t keep it, but you can spend it. Once you’ve lost it, you can never get it back.”
At Precision Wealth, we exist not to sell but to serve. We’re here to redefine investment and financial advice. And although we don’t know where markets will go tomorrow or next month or next year—we do know what matters. What matters is to reduce expenses, build diversified portfolios, minimize taxes and maintain discipline. We are here to build the bridge between goals and outcomes.
The Bridge is Our Approach
Evidence based investing is all about managing the odds and the probability: an integrated approach versus an individual sleeve. You don’t really have to have faith in the stock market; you need to have faith in capitalism. And when you think about capitalism, you have to realize that a company’s main focus is to make money. Most years they find a way to do that. This is something we think you should know.
Robo-Advisor Platforms and Automations: Not a Complete Service
To those who think you can use a Robo-Advisor platform or an automated service, or you can try this on your own, I would ask you to reflect on the fact that 90% of all trades are done by professionals. To keep the financial plan ‘in balance,’ automated platforms sell what’s working, but also put it into what’s not working. Can a Robo platform or automated service really compete? Is it really that simple? We think it’s far more elaborate than a short questionnaire and an automated solution.
We Deliver Four Categories of Value:
- Competence: We offer expert tax, estate, income planning and risk assessment services
- Coaching: We educate clients, set expectations, stick to the plan
- Convenience: We save clients time, provide professional service with the latest technology, and coordinate with other experts
- Continuity: We are here for your whole family, for generations to come
The Big Tease of Media
The media persuasion is that they have the answers, when in fact analysts have no idea of future prices; their analysis is reflected in current prices.
We’re Beside You in this Journey
We suggest you reduce expenses, build diversified plans, minimize taxes and stay disciplined. Beyond that, your only client act of faith is that capitalism will make you money over time. We’re here to bring you to exceptional asset managers. We’re right next to you on this journey. For that, we thank you.
We’re very excited about where our firm is going in 2019, and have much to share with you in the New Year. Stay safe and have a wonderful holiday season.