Stableford Capital Insights
Why an Investment Approach Must Include Asset Protection and Growth
Most people invest with a goal in mind – to pay for an education for kids or build a secure retirement are two common reasons. For this reason, it’s natural for the investment approach of non-professionals to place a greater emphasis on asset growth.If you’re like most investors, you’re building wealth in order to live the life you want. For those closer to retirement, you’ve worked a lifetime and plan to enjoy the fruits of your labor and hope to still leave a legacy to your loved ones.
Watch for the Bull in the China Shop
Because we can’t rely on a stable or consistently bull market, asset protection should be as important to you as growth. Both professional and
novice investors must consider highly volatile market fluctuations when constructing a long term investment strategy.Figuring out the best moves to make in a changing market is a complex thing. It requires understanding investment vehicles, their risks, and being able to predict the likely changes in the market to balance risks against rewards and this requires a high level of expertise and experience. That’s why investors should work with a financial investment firm to get the best results.Before you choose a firm or advisor, find out what they do to both grow assets and protect what you have. Financial advisors must be mindful of:
How Will They Manage Your Assets?
Advisors must be sensitive to the potential risks in every market. When you’re interviewing financial advisors, be suspicious if they’re only talking about the upside of the market. Even when the markets are rapidly rising, there’s always the potential for a reversal.At Stableford Capital, we communicate the reality of the markets and suggest actions that align with our clients’ tolerance for risk. Look to our Insights articles and our Monthly Commentary to see how we analyze and explain investment potential.For instance, in September 2020, there was reason to be optimistic, but we remained cautious – here’s a short excerpt from the September 2020 Monthly Market Commentary:
“We’re big believers in pricing equities off future earnings potential—but only to a point. We also believe in being prudent and buying good companies at reasonable prices. If we can’t justify the price, we don’t want to put clients’ capital at risk. Assessing investments this way provides downside protection, something we view as more important than upside potential. It’s how one differentiates investing from gambling.”
What Investment Approach Do They Take?
Technical analysis is an important tool for financial investment advisors, however – it should inform a strategy rather than be or drive the entire strategy. At Stableford Capital, our investment team uses technical analysis to asses when the market is no longer performing as
projected.Why is this important? The analysis of trends alerts us to both risks and opportunities within the portfolio structure in real time and ultimately plays a part in how we’re investing.This explanation from our article, How Stableford Uses Technical Analysis in its Investment Management Strategies says more, “At Stableford, technical analysis informs the portfolio management process rather than drives it. Technical analysis only makes a difference because our asset management leaders have been able to use the analysis within the context of our investment management strategies.”
How Do They Keep Up with Changes in Your Life?
While the market could certainly influence your investment strategy, so can life changes. And as you enter different stages of your life, your
investment goals can also change and you could become a different investor. In short, they should stay involved with you and your goals.And, they should keep you up-to-date on your portfolio and inform you of both good news ad bad. A consultative, client-centric approach ensures you’re listened to and your goals are known, which ensures an investment strategy that’s unique to you and your goals as they evolve over time.Are you interested in finding out how an investment firm that protects your wealth during uncertain times might help you? Take advantage of Stableford Capital’s free 15-minute consultation and get your questions answered. Or, you can give us a call at 480.493.2300.
