While it is easy to get caught up in the state of the economy or the latest “hot” stock, we believe passionately that the way you invest should be aligned with where you are in your life…not with the short-term ups and downs of markets.
We don’t believe that stock picking, market timing, and chasing the latest track record is good for anyone except the folks on Wall Street. Instead, we ask questions about your goals and time horizon, what’s important to you, and how you feel when markets decline and the media is declaring that the world is coming to an end.
Then, we construct your portfolio with a high level of diversification using Asset Class investing, which believes in owning securities in thousands of companies in many different industries. Asset Class investing is defined by selecting the securities that best represent an asset class, such as small or large companies, emerging markets, or international — instead of blindly following an index.
Here’s a short video from our partners at Loring Ward that shows how $1 invested in the U.S. total stock market grew over the past nine decades, through all of the political events occurring in this time period — many of which were pretty unsettling and sensationalized by the media. The lesson here? News events and panic inducing magazine covers from Time magazine had little impact on long-term market growth.
You should have a financial blueprint to help you manage your opportunities, needs, concerns and goals. We call this approach Asset Class Investing and believe it makes good sense as you plan for both today and tomorrow.
There are three things to remember about how Asset Class Investing can work for you and your family:
1. It focuses your investment portfolio on meeting your life goals.
It is an approach designed to help you manage towards your most important goals rather than to short-term market trends.
2. It is based on science and academic research.
It combines the latest discoveries in economics and investing with close to 90 years of market data and insights as well as in-depth studies of investor psychology and behavior.
3. It is a disciplined and structured approach.
It helps protect against the common behavioral mistakes that can compromise your long-term financial goals.