FOCUS ON WHAT YOU CAN CONTROL
A financial advisor can create a plan tailored to your personal financial needs while helping you focus on actions that add value.
This can lead to a better investment experience.
CONSIDER THE DRIVERS OF RETURNS
Academic research has
identified these equity and
fixed income dimensions,
which point to differences
in expected returns.
These dimensions are
pervasive, persistent, and
robust and can be pursued
in cost-effective portfolios.
PRACTICE SMART DIVERSIFICATION
Diversification helps reduce
risks that have no expected return, but diversifying within your home market is not enough. Global diversification can broaden your investment universe.
MANAGE YOUR EMOTIONS
Many people struggle to separate their emotions from investing. Markets go up and down. Reacting to current market conditions may lead to making poor investment decisions at the worst times.
LET MARKETS WORK FOR YOU
The financial markets
have rewarded long-term investors. People expect a positive return on the capital they supply, and historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.
LOOK BEYOND THE HEADLINES
Daily market news and commentary can challenge your investment discipline.
Some messages stir anxiety about the future while others tempt you to chase the latest investment fad.
When tested, consider the source and maintain a long-term perspective.
DON'T TRY TO OUTGUESS THE MARKET
The market's pricing power makes it difficult for investors who try to outsmart other participants through stock picking or market timing.
As evidence, only 17% of
US equity mutual funds have survived and outperformed their benchmarks over the
past 15 years.
INVESTING IN A BETTER FINANCIAL EXPERIENCE
EMBRACE MARKET PRICING
The market is an effective, information-processing machine. Millions of participants buy and sell securities in the world markets every day, and the
real-time information they bring helps set prices.
AVOID MARKET TIMING
You never know which market segments will outperform from year to year. By holding a globally diversified portfolio, investors are well positioned to seek returns wherever they occur.
- DAVID BOOTH
RESIST CHASING PAST PERFORMANCE
Some investors select mutual funds based on past returns. However, funds that have outperformed in the past do
not always persist as winners.
Past performance alone provides little insight into a fund’s ability to outperform in the future.