I never have anything rehearsed or scripted when talking with clients and potential clients, so it’s seldom that I end up repeating the same phrase over and over.
Something I have said often though, is that while I do consider indicators on where the markets may be heading, and use them to weight my portfolios, I can’t actually predict what’s going to happen, so it’s my job to prepare them for everything.
It would be folly to think I can consistently predict in advance, which parts of the markets will go in which directions. That path is littered by disappointed investors.
Instead, my job is to create a customized portfolio, that fits your needs and comfort levels, and that will react as best as possible to three scenarios; to current market circumstances, to the direction(s) we think the markets might go over the near and far term, and in case unforeseen events take place, to directions we don’t anticipate.
Technical analysis, fundamental analysis, the psychology of the masses… whatever technique(s) you use to make informed investment decisions, the bottom line is that no one can accurately predict the stock, bond, and real estate, etc. markets consistently. There’s a rather large difference between speculating and investing. To ignore this concept is to speculate. To understand and use this concept, managing your portfolio with this in mind, is investing.
It’s a philosophy to consider when creating your own account or portfolio.
If you have any questions, please call or write. We’d love to hear from you.