financial advisor hawaii

Investing decisions

Moving to a sunny climate doesn’t mean you’ll get perfect weather all the time. Similarly, investing in stocks doesn’t guarantee you’ll make money every day. But over time, both sun and investing tend to pay off if location and setup is right So, if you’re patient and disciplined, investing is a great way to make your money work for you.

Investors should consider two things when making investment decisions: the investment itself and the investor’s larger purpose for investing. We can help investors develop their investing philosophy and make sound financial decisions that can last a lifetime. Understanding ones own financial goals and investment profile can make it much easier in down markets and up markets. Once we understand why and how markets work, we tend to stay more disciplined and stay more focused on the ultimate end goal.

To better understand how markets work, it pays to familiarize yourself with the three academic investment philosophies summarized below. Two of these philosophies have even won Nobel Prizes.

1 The Three-Factor Model: a portfolio’s exposure to three simple yet diverse risk factors—market factor, size effect, and value effect—determines how it performs.

2 Efficient Market Hypothesis: at any given point in time, the actual price of a security is a good estimate of its intrinsic value.

3 Modern Portfolio Theory: This is a tool for optimizing portfolio diversification across a mix of assets. In theory, it can deliver the maximum expected results for the level of risk the investor is comfortable taking.

If you want to know whether your investment portfolio is on track, the Portfolio MRI® can give you a transparent and clear picture. This diagnostic assessment estimates the mix of assets in your portfolio and simulates its historical risk and reward properties. By comparing these properties against those of broadly diversified portfolios with an asset allocation policy based on Nobel Prize-winning investing science, you can plainly see the potential differences in past performance between various mixes or styles of investment portfolios and your own. With this information, we can help adjust your portfolio to make sure it is working for you and help get you a to a higher likelihood of long-term investment success.

Reach out to us to see how to get your Portfolio MRI with no obligation and no cost.

Contact us

 

Scroll to Top