2019 Financial Markets: It Could Be a Bumpy Ride

So here we are. Another new year with various resolutions, renewed commitments to be disciplined, and yet, financial market volatility begs the question, “what if”? At times like this, I find it wise to go “back to the basics”. So, let’s begin there and review.

Portfolio Allocation: A Question of Appropriate Risk Tolerance

Remember those risk tolerance questionnaires you complete and review with me at least annually? The review and discussion about your risk tolerance and time horizon sets the stage for your portfolio allocation. The “big picture” of portfolio allocation answers the question, “how much of my account is in equities, and how much is in fixed income?”

Risk tolerance is a seemingly simple concept, but in reality, it is one of the most complex indicators of an appropriate portfolio allocation. It covers not only your financial condition and “investment age” timeline, but also captures lifestyle stability, income and expense stability, familial changes, and oh yes, the dreaded subjects of your personal political and economic outlook. All of these topics help me, as your Investment Advisor, understand how much risk you can tolerate, your psychological approach to investing and the factors that affect you personally. If you find yourself feeling nervous about how market volatility is affecting your investment account, it’s time for a discussion of your risk tolerance and portfolio allocation.

To access Client Tools and update your Risk Tolerance + Timeline Questionnaire, click here.
To reset your password, please call (682) 593-7321.

Stock Picking, ETFs, and Fixed Income

At Pride Financial Advisors, our approach to investment portfolio management involves “discipline”. What does that mean? It means we follow a process by which we choose the positions (stocks, bonds, ETFs, etc.) to include in your portfolio. We utilize the talent of money managers to assist with the analytics of this process, which involves thousands of data points. The data is collected then sorted by various criteria to determine the positions believed to be the best options from a fundamental, quantitative, and/or technical perspective. From there, we consider microeconomic and macroeconomic influences to create and manage your portfolio on an ongoing basis.

Many of you have met John McHugh, Chief Investment Officer of Duncan McHugh Investments, and if you have, you’ve likely seen a glimpse of these analytics that create the backbone of our disciplined process. Rather than being under the influence of emotion, this process instills inherent objectivity to the decisions made.

Trend Analysis: Helping You Have the Confidence to Stay Invested

Many of you have elected to apply the DBS Hedging strategy to your portfolio. Why is this recommended? Staying fully invested can be difficult. Timing the market can be near impossible. How can you have the confidence to stay the course? The use of financial trend analysis can help.

While our approach to investment management is fundamentally disciplined, there is no crystal ball to predict the future. Over time, the financial markets will change. Sometimes the change is positive, and sometimes it’s negative. We’re committed to providing our clients with a solution that participates in the market upturns while potentially mitigating participation in market downturns. If elected, this tool is applied to the equity portion of your portfolio. It is effectively utilized in a prolonged market change by signaling when an adjustment to your asset allocation is appropriate to reflect current market conditions.

Here to Help

Navigating financial markets can be confusing, but we’re here to help. For any questions or to schedule a portfolio review, please give us a call at (682) 593-7321.