Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

November 16, 2015 | Best to Stop Reacting to Daily Headlines

Adrian Mastracci

Adrian Mastracci, Discretionary Portfolio Manager, B.E.E., MBA. My expertise in the investment and financial advisory profession began in 1972. I graduated with the Bachelor of Electrical Engineering from General Motors Institute in 1971. I then attended the University of British Columbia, graduating with the MBA in 1972. I have attained the “Discretionary Portfolio Manager” professional designation. I am committed to offering clients the highest standard of personal service by providing prompt, courteous and professional attention. My advice is objective, unbiased and without conflicts of interest. I’m part of a team that delivers comprehensive services and best value in managing client wealth.

I empathize fully. Last week the Dow dropped 665 points while the TSX tumbled 478 points. Who knows what’s up next.

Investors always worry about something. They have difficulty separating facts from daily noise. Often making knee-jerk reactions to barrages of market events.

Reality is that investors are passionate worry-warts. Even though worrying about the minefield does not change the outcomes.

I don’t dwell on the endless day-to-day gyrations. Rather, I accept that slow global growth is the continuing normal wrapped in turmoil and uncertainty.

I also accept that investor sentiment can quickly change from frowns to smiles. Sometimes both on the same day. Tomorrow adds a fresh batch of investor worries.

I’m of the view that it’s best not to dwell on the avalanches of daily market gyrations. This approach accomplishes three important things:

▶ Reduces constant worries.

▶ Keeps the game simple.

▶ Eases investor stress.

Investing does not evolve in straight lines. It’s wise to design a comfortable asset mix and follow your plan.

My observation is that worried investors often wait too long, only to make wrong decisions. Instead, I prefer to:

▶ Invest slowly following a long-term management style.

▶ Buy some quality equities when nobody wants them.
▶ Sell some equities when everyone is chasing them.

▶ Rebalance when funds are added or withdrawn.

So take your time. Tune out the market distractions.

It’s the simple game plan every investor can customize to overcome daily gyrations.

-30-

Questions, feedback and comments are invited.

Best,

Adrian

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

November 16th, 2015

Posted In: Adrian Mastracci Blog

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.