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Pursuing a Better Investment Experience

With the internet providing investors with a wealth of information regarding investment and retirement strategies, it’s hard to sift through the clutter and identify what truly is important and what will work for you and your family or business. Smith Bruer Advisors uses evidence based investment theory to help individuals pursue a better investment experience, summarized with these ten facts.

1: Embrace market pricing

World Equity Trading in 2016The market is an effective, information-processing machine. Millions of participants buy and sell securities in the world markets every day, and the real-time information they bring helps set prices.


 

2: Don’t try to outguess the market

US Equity Mutual Fund PerformanceThe market’s pricing power works against mutual fund managers who try to outsmart other participants through stock picking or market timing. As evidence, only 19% of US equity mutual funds have survived and outperformed their benchmarks over the past 15 years.


 

3: Resist chasing past performance

Do Outperforming US Equity Mutual Funds Persist?Some investors select mutual funds based on past returns. However, funds that have outperformed in the past do not always persist as winners. Past performance alone provides little insight into a fund’s ability to outperform in the future.


 

4: Let markets work for you

Growth of a DollarThe financial markets have rewarded long-term investors. People expect a positive return on the capital they supply, and, historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.


 

5: Consider the drivers of returns

Academic research has identified these equity and fixed income dimensions, which point to differences in expected returns. These dimensions are pervasive, persistent, and robust and can be pursued in cost-effective portfolios.

Dimensions of Expected Returns on Investment


 

6: Practice smart diversification

diagram6Diversification helps reduce risks that have no expected return, but diversifying within your home market is not enough. Global diversification can broaden your investment universe.


 

7: Avoid market timing

diagram7You never know which market segments will outperform from year to year. By holding a globally diversified portfolio, investors are well positioned to seek returns wherever they occur.


 

8: Manage your emotions

diagram8Many people struggle to separate their emotions from investing. Markets go up and down. Reacting to current market conditions may lead to making poor investment decisions at the worst times.


 

9: Look beyond the headlines

diagram9Daily market news and commentary can challenge your investment discipline. Some messages stir anxiety about the future while others tempt you to chase the latest investment fad. When tested, consider the source and maintain a long-term perspective.


 

10: Focus on what you can control

diagram10A financial advisor can create a plan tailored to your personal financial needs while helping you focus on actions that add value. This can lead to a better investment experience.


 

Ready to empower yourself with a strong financial plan?

Have a question? We're here to help.

Simply complete our contact form or contact us via phone or email.

(850) 877-0803
info@smithbrueradvisors.com

Please note that we have an account minimum requirement of $500,000.

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1809 Miccosukee Commons, Suite 114
Tallahassee, FL 32308


Tallahassee, Panama City and Gainesville


Ph: (850) 877-0803 F: (850) 298-8662


info@smithbrueradvisors.com © 2018 Smith Bruer Advisors
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