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May 13, 2016 | How to Invest Amid Jittery Markets

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.

Investors can be forgiven for feeling a little nervous.
Particularly, as stock and bond markets remain under pressure.

At this stage, investors are looking for US GDP growth over 2%.
Instead, recent data is well under 2%.

Experienced investors know that discipline helps steward both rallies and selloffs.
Your goal is to keep doing things that work and stop those that don’t.

Investors are best served with a clear perspective for the long-term.
Especially , when markets are giving back some ground.

I highlight a few classic strategies to navigate today’s investing jitters:

Risk management is priority one. It’s always in fashion. Let it be your best investing friend. Wise investors care about incurring risks. Novice investors shop for returns.

Decide whether you’re stewarding “serious” or “speculative” money. The serious part provides for your long-term retirement needs. Speculation aims for home runs.

Resolve which is more important: preservation or growth. The answer affects your portfolio design. If your desire is to participate in long-term returns you can’t avoid short-term fluctuations. It’s taking risks that delivers your returns.

Investing is a logical exercise, not emotional. Avoid knee-jerk reactions and decisions. Opportunities rise from the ashes of market selloffs. Be ready for both downside and upside market moves.

Stick to basics. Skip the glittery moves. Focus on areas that you control. Such as risk tolerance, time horizon, broad diversification and asset mix. Simple has many virtues.

Invest in stages. Invest your money in three or four instalments, say over a year or two. Hopefully, when markets tumble. Some rebalancing also helps.

Be confident in your approach to investing. Resist your temptations to second guess. Focus on buying quality. Emphasize dividend income that may increase while you wait.

Adopt your sensible capital loss agenda. Incurring a loss is painful. Don’t cling to troubled stocks. Resist averaging down on your losers. Take the awful medicine early. Like selling one-third of your position if it drops 20%.

These time-tested strategies have proved themselves over and over.
They make investing less scary with all the market jitters milling about.

It’s about having your disciplined roadmap in place.
Before you invest.

Is it time to revisit and rethink your strategies?

Talk soon,

Adrian

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May 13th, 2016

Posted In: Adrian Mastracci Blog

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