We’re proud to say that our Director of Investments, Todd Jones (CAIA), was recently quoted in the Forbes article “3 Lessons Traders Can Learn from Investors.” He was the article’s primary source.
The Forbes article details the dangers of emotionally charged investments, the importance of keeping a balanced portfolio and the difference between risk and volatility in investments.
Todd is quoted on the importance of keeping a balanced portfolio (which we cover a lot in our insights, including this one on the benefits of alternative investments and portfolio diversification).
On the issue of short-term traders selling quickly in times of stress, Todd says, “To me, this makes no sense, as the need to rebalance should be based on the returns of each asset class as they relate to each other. This prevents unnecessary trading/capital gains and maintains a consistent risk profile.”
As for volatility, “It’s just noise,” says Todd. Invest in your own knowledge of fundamentals: it’ll help you understand if there is a risk in sudden stock surges or dips or if it is simply the natural highs and lows of the market itself.
At Gratus Capital, we serve clients across the US with a tailored team approach based on the principles expressed by Todd in this article. We’re a boutique wealth management firm focused on serving successful individuals, families, foundations, and endowments with a low client-to-advisor ratio and fee-based advisory services. What new financial goals do you have in mind? Contact us to learn how we can help.