Recap |
This market volatility, unfortunately, is here to stay. |
Review |
All sectors and asset classes (-bonds) seem to be participating in this most recent market rally - which is a good sign for the overall market. |
What To Do |
Performance chasing is an investment phenomenon that many succumb to, but few understand. Here is a quick answer, of course with specific examples, of why performance chasing is not a good investment strategy. First, let’s define performance chasing. When you look up a fund (ETF, stock, sector, or asset class) on the internet or in your choices for your 401k at work, and you immediately think the “best” funds are the ones with the “best” performance figures, you are performance chasing. To uncover why this is not a good strategy to use, you have to look at what securities have created these superior returns. Most of the time, it’s because the fund manager has made a real good call - as in owning commodities of late or getting out of the market at the right time, thus the outstanding results. More often than not, these are one time occurrences. Only looking at the best performance figures will only lead you to buying into the stocks, sectors, or asset classes that are topping or have already gone up. To be a successful investor, you want to do the exact opposite. Performance figures are very important, but they won’t lead you to better investment results. Individual investors should also look at – who are the best fund managers, Independence, low expenses, low turnover, size, and stewardship (more detailed information and research can be found on our web site under the recommendations page). Looking at all of the above is a much more sustainable and repeatable investment strategy that will yield much better investment results! |
Quote of the Week |
When everyone thinks alike, everyone is likely to be wrong – Humphrey Neill |
Clark Bros. is hiring! |
Stay Positive! Think Positive! Act Positive! Be Positive!
Clark Bros. is hiring Independent Registered Investment Advisor Representatives – full time, part time, anytime, anywhere. Please visit our web site at www.clarkbrothersinvestments.com for more information.
Jason R. Clark
T: 720 255 5711
jason@clarkbrothersinvestments.com
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Clark Brothers Investments
Registered Investment Advisors
18810 E. Whitaker Circle
Aurora, CO 80015
www.clarkbrothersinvestments.
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