With three decades of experience as a financial planner, Terry Conner, CFP®, has seen trends come and go. While some have stood the test of time, others have come and gone after a short period in the sun, putting investors at risk of falling short of their goals. Investment News recently published a story about these trends and consulted longtime advisors and investment managers, including Terry, for further comment on excessive speculation. Terry said:
“The overwhelming majority of the clients we work with do very little speculative investing. As both a fiduciary and a goal-based investment financial planner, we encourage our clients to invest in such a way so as to maximize their probability for success. Our firm’s mindset is that clients should make their direction match their intention so they can reach their financial destination regardless of the current market speculation.”
He did, however, say that some of our younger clients have approached him about crypto, how to use it in a portfolio and the long-term outlook of this relatively new form of currency. As with most trends, Terry tells investors to exercise extreme caution and to only invest money they can afford to lose. Terry also spoke about leveraged ETFs, which are investment vehicles that gain popularity during periods of hype and speculation. He said:
“As a general rule, our clients avoid leveraged investments,” he said. “We prefer to look at alternative investments as an opportunity for increased return potential as they have a general higher probability of success.”
We believe it’s important to match each of our clients’ portfolios with their goals and their tolerance for risk. That means finding methods and alternatives that we think offer a higher probability of achieving those goals, then sharing them with our partners. Additionally, as we’ve seen trends come and go, we traditionally opt for tried-and-true methods of preserving wealth and mitigating risk, ideally helping our clients keep the money they might need for the future.
For more about investment trends, bull markets and excessive speculation, you can read the entire article from Investment News by clicking here: https://www.investmentnews.com/how-advisors-rein-in-overly-bullish-clients-240269
If you have any questions about how you can tailor your portfolio to your goals and appetite for risk, please give us a call at (417) 720-4255.
Advisory products and services offered by Investment Adviser Representatives through Prime Capital Investment Advisors, LLC (“PCIA”), a federally registered investment adviser. PCIA: 6201 College Blvd. Suite #150, Overland Park, KS 66211. PCIA doing business as Prime Capital Wealth Management (“PCWM”) and Qualified Plan Advisors (“QPA”).