Search
integrated planning for life
 
integrated interior banner

Q1 2016
Chasing Performance Can Be Like Running In Reverse

Contact Our Team

In a volatile market, investors can exhaust themselves chasing after the “latest and greatest” investment tip, or selling their current holdings to try and outperform their peers.

In a volatile market, investors can exhaust themselves chasing after the “latest and greatest” investment tip, or selling their current holdings to try and outperform their peers.

But trying to take advantage of a short-term trend to support a long-term strategy is like starting a marathon as if it were a sprint. If you take that approach, you’ll use up all your energy in the first mile and by the time you reach the five-mile mark, chances are you’ll have fallen behind.

Instead, consider these actions to keep your portfolio in good financial health:

  • Focus on yourself: You have no control over the future of the economy or the financial markets, so the only thing you can control is your commitment to a disciplined approach to investing.
  • Fuel your body for peak performance: Just like your body requires plenty of water and the right high energy food to function properly during a marathon, your portfolio should be regularly rebalanced to ensure your original asset allocation is aligned with your goals. Uncontrollable, wild swings in the market make portfolio rebalancing more important than ever in an effort to keep moving ever closer toward your goals.
  • Keep pace with change: Changes in your life happen — whether planned or unplanned — and more likely than not, they’ll impact your investment goals. That’s why it’s important to revisit your financial plan regularly and make necessary updates to reflect those changes.

You also need to be careful of unseen obstacles in the road. While it’s easy to look backwards at historical market performance, it’s not easy to predict what will happen next.

Guessing what’s around the next corner isn’t a consistently reliable investing strategy and you may find yourself selling when you should be buying and vice versa.

The bottom line is that when it comes to stellar past performance credited to “highly rated” funds, it’s important to remember that yesterday’s top performer may be tomorrow’s underperformer.

 

RubinBrown Wealth Advisors help clients identify, prioritize and achieve their financial goals and objectives utilizing an experienced group of professionals that can integrate income taxes, estate taxes, financial planning, risk management and investment management needs, all in one place, throughout their lifetimes.

RubinBrown Advisors may only transact business in any state if we are first registered, excluded or exempted from the applicable registration requirements. Follow-up, individual responses or rendering of personalized investment advice for compensation will not be made absent compliance with applicable state registration requirements or an applicable exemption or exclusion.

All Quarterly Investment News