Markets Are Cyclical
Aggressive investors hate missing gains more than facing losses. Fundamentally they tend to believe:
Stocks eventually outperform other alternatives
Volatility is the price one pays for better performance potential
It's impossible to profitably time the market
People with this mindset have generally invested successfully through extended bull (up-trending) markets and made a lot of money. In their experience, when they reduced their exposure to stocks it was historically a bad decision.
Very Risk Averse people find stock market investing stressful. They are often concerned that:
"I can't afford to suffer a big loss"
There is some event on the horizon that will lead to the next crash
"I don't know enough"; "I've been burned before and I don't know who to trust"
People with this mindset have generally either suffered severe losses in an extended bear (down-trending) market or known others who may have lost enough that they had to return to work, change homes or were otherwise unable to maintain their lifestyle due to market losses.
Neither of these people are wrong about investing. They simply had different experiences because markets are cyclical, and they happened to invest at different stages of the market cycle.
"You can observe a lot by just watching" -- Yogi Berra
Jason has spent his career as an investment strategist and portfolio manager helping investors through some of the greatest expansions in history and some of the most brutal downturns.
From a practical perspective, our goal is to achieve a target rate of return to fund your long-term goals.
Most people simply don’t have the resources to sit in cash indefinitely. Taking too little risk ultimately causes the circumstances they were hoping to avoid due to insufficient savings.
If you are always fully invested, you are at the mercy of the market. You may get lucky or unlucky.
Proper risk management creates the opportunity to participate in investment gains and potentially take advantage of buying opportunities after periods of weakness.
If we take some profits when actual returns are ahead of our target, we then have the flexibility to buy into potential future weakness as markets cycle up and down.
Investing Is Personal - Our Process Is:
Identify needs, goals, resources, values, experience and risk preferences
Establish an asset allocation model based on long-term historical data
Adapt that asset allocation to current market conditions
We always report market performance to provide a context for actual investment results, but our true benchmark is driven by your goals and priorities.
Following , we invest our personal capital following the same principles, process, products and strategies as used in our client portfolios. That said, every client is different and its simply not effective to force conformity.
Having spent more than 20 years immersed in financial markets, Jason has developed strong opinions regarding risk management, market timing, stock selection and asset allocation. But we believe the most important attributes of a successful investor are being humble, flexible and realistic.
"She generally gave herself very good advice, (though she very seldom followed it)." – Lewis Carroll
We enjoy getting to know each client personally and being held accountable for meeting their goals and expectations through volatile markets. Investing can be an emotional roller coaster at times. Jason has been fortunate to have built a track record helping smooth some of the bumps and adapting portfolios to endure through different market environments.
We help aggressive investors improve long-term results by being more disciplined and realistic. More risk averse investors find comfort that we generally have a plan for almost any possible outcome.
Through open communication we work to build trust, reducing both fear and frustration that may otherwise lead to poor decisions.