My Investment Team Has Emotional (or lack of) Issues
Hi, ! It’s officially the weekend - but first, read this!
As most of the leaves are now in my yard and the days are getting shorter, the markets and the economy are all playing with my emotional stability. Last week I briefly touched on the emotional side of investing and mentioned something about not being as concerned about hitting the “top” of the market. Of course our goal is to maximize your returns, but there is an overlying focus on protecting your investments from downturns like we saw in 2022.
There are some reasons for this.
A comparison of some of the top rated balanced portfolios available in Canada.
When I start thinking about the role of an investment advisor (and their team), one of the aspects that we miss sometimes is the role of coach. Money and investments can be highly emotional and we can often veer from a plan when we allow emotions to take over.
I have had conversations with our portfolio management team on several occasions regarding holding more cash than usual, being underweighted in certain areas, or overweighted in others. Each time their answer revolved around having a plan and sticking to it. I’m constantly amazed by how unemotional and calculated they are with their decisions.
I’m sure many of you have seen this chart (or a similar one) and I am often reminded of this in my conversations as we move through the economic cycles.
I often share what trades our team has done with our private portfolios in this newsletter and you can see the most recent moves here. I personally find solace in the calculated nature of the trading that happens on your behalf. As you read the explanations of why they have made these changes, never does it sound like they are trying to jump on the “hot” stock or investment.
I may be biased, but having a coach (or me) is a great way to avoid those emotional missteps. Every successful entrepreneur has a coach to help keep perspective and more and more people are turning to professional coaches in many aspects of their lives.
When it comes to your financial wellbeing you can rest assured that you have a team that both cares deeply about you, your family, and you fincial future, but also has an unemotional perspective that allows us to continue to make reseach-driven decisions to help you accomplish all your goals.
Have a great weekend,
Trevor
PS Almost all of our videos are now on our website and you can find them here!
