The Role of Volatility in Maintaining Good Client Relationships
February 27, 2024
Equities, Fixed Income and the Power of a Strong Midfield
March 4, 2024What makes an advisor elite?
It’s simple. Elite advisors:
- Take time to listen and understand their client’s goals
- Help you build a comprehensive financial plan to meet those goals
- Construct portfolios resilient to volatility over the long-term
Any advisor can build a financial portfolio, but only the best will help you reach your goal while also minimizing volatility. Meaning when volatility happens — which it will — these advisors are prepared to manage the Volatility Gap.
It’s always the same problem that destroys a portfolio. Because volatility produces emotion, and it’s the emotions that destroy the portfolio. And that’s what causes you to sell. And then that’s what it causes you to sell at the bottom and buy at the top.
Are you building a bulletproof portfolio that’s weatherproof for both bull and bear markets? The real answer to the Volatility Gap(™) is a portfolio that is: Strongly correlated to the markets during periods of growth Has a reduced or even inverse correlation during periods of rising volatility or market stress.
That way, the risk calculation is taken out of the day to day.