facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast blog search brokercheck brokercheck
%POST_TITLE% Thumbnail

Relationships & Portfolios

Relationships & Portfolios

February can be characterized as the month to celebrate our loved ones, whether that’s our significant other, friends, or family.   Specifically, February 14th, or Valentine’s Day, is a day when gifts are exchanged, hugs are given, and chocolates are eaten.  This is the day when we celebrate the relationships we have built with ourselves and others.  These relationships, at a base level, are transactional in nature.  We must be willing to give in order to receive.  This might include things like missing the football game on Sunday to attend your friend’s son’s birthday party.  The idea is that to have meaningful long-term relationships we must be committed to seeing them succeed.  The relationship we have with our investment portfolio is not any different.

For our portfolios to help us achieve our financial goals we must remain committed to our investment strategy.  Investment strategies vary and change over time based on our personal situations and they may be challenging to adhere to, but they play an essential role in determining the success of our investment goals.  Now, in the investment universe, as with many other areas in life, there are no certainties, but here are a couple of tips to keep in mind for your relationship journey with your portfolio.

  1. Diversify.   As the old quote goes, “don’t put all your eggs in one basket”.  Diversification, for our discussion, means allocating to varying asset classes or sectors within asset classes.
  2. Do not try to time the market.  I purposely use the word “try” because timing the market successfully and consistently is impossible for anyone to achieve.  For those wishing to invest funds into the market but are concerned about an entry point you are comfortable with, talk to your advisor about different asset deployment strategies.
  3. Avoid making emotional decisions based on market fluctuations.  Look back to number 2 above.  Remember that the best way to achieve success is staying disciplined to your investment strategy.  In this case, that means proper diversification, not timing the market, and remaining invested through all market cycles.

As we have all experienced, relationships require time, effort, and commitment.  Our relationship with our portfolio also requires all three.  Lastly, relationships among individuals may sometimes require professional help in the form of counseling or other intervention for them to succeed.  Similarly, you can reach out to a licensed investment professional to help you reach your investment goals and objectives.


Written by Cesar Ortega, Associate Portfolio Manager