When faced with short-term noise, it is easy to lose sight of the potential long-term benefits of staying invested.
For investors, it can be easy to feel overwhelmed by the relentless stream of negative news and its potential spillover effects on the markets. Being bombarded with data and headlines presented as impactful to your financial well-being can evoke strong emotional responses from even the most experienced investors.
When faced with short-term noise, it is easy to lose sight of the potential long-term benefits of staying invested. For instance, few expected 2019 to be such a strong year for the global stock markets. If anything, clients were asking about trimming back stock market positions, fearful over the current state of affairs.
While no one has a crystal ball, adopting a long-term perspective can help change how investors view market volatility and help them look beyond the headlines.
What also helps keep a long-term perspective is knowing that your portfolio invests in more than just the stock market. SilverPeak Wealth uses a broadly diversified approach that spreads investments over stocks, bonds, and real estate. Then, SilverPeak Wealth makes adjustments over time to keep clients optimally positioned based on their goals and their needs.
The Value of a Trusted Advisor
Part of being able to avoid giving in to emotion during periods of uncertainty is having an appropriate asset allocation that is aligned with an investor’s willingness and ability to bear risk. SilverPeak Wealth creates portfolios that clients are comfortable with, understanding that uncertainty is a part of investing, and sticking to a plan may ultimately lead to a better investment experience.
How Do You Primarily Measure the Value Received from Your Advisor?
Top Four Responses
A recent survey conducted by Dimensional Fund Advisors (see Exhibit 1) found that, along with progress towards their goals, investors place a high value on the sense of security they receive from their relationship with a financial advisor.
Having a strong relationship with an advisor can help you be better prepared to live your life through the ups and downs of the market. That’s the value of discipline, perspective, and calm. That’s the difference the right financial advisor makes.