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Did You Know? We're only human...

| April 25, 2017
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Did You Know?

Working with a financial advisor may provide better investment returns.

Dalbar’s 21st annual QAIB (Quantitative Analysis of Investor Behavior)1 study showed that the 20-year annualized S&P return was 9.85%, while the same 20-year annualized return for the average equity mutual fund investor was only 5.19%, a gap of 4.66%. A key reason, per the study, is investor behavior

That’s right.  Being human does have its downside. Study after study indicates investors are often driven by emotion and emotion-based trading is often counter-productive:  reactive investors tend to make decisions on short-term market conditions, ignoring sound investment strategy and basing their decisions on goals, risk-tolerance, and their investment time horizon.

 

At Capitol Wealth Management, we look at both emotional and analytical aspects of investing.  We believe data drives decisions and much of what we do is designed to help our clients overcome the emotional drive to do the wrong things at the wrong time.

Additionally, we employ processes designed to consistently add additional return to your investment portfolio.

A few of these are:

 

  • Appropriate asset allocation
  • Cost effective implementation
  • Consistent re-balancing
  • Investment and tax sensitive spending strategies

If you believe your investment strategy may be missing some of the items above or you want to learn more about how we help our clients handle periodic volatility without abandoning their investment plan, please contact us at tim@capitolwm.com.  We’d love to help you set the right course and stick to it.

1http://www.dalbar.com/ProductsAndServices/QAIB
Securities and Investment Advisory Services offered through Woodbury Financial Services, Inc., Member FINRA, SIPC and Registered Investment Advisor. Insurance services offered through Capitol Wealth Management, not affiliated with Woodbury Financial Services. Woodbury Financial Services, Inc. does not offer legal or tax services.

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