Discipline is a Key to Successful Investing

 Discipline is a key to success in so many facts of our lives.

Discipline is integral for exercise, diet and health efforts to be successful. Without discipline, they fail.

Being disciplined takes effort, courage and the ability to adhere to your plans and intentions. It is the ability to control your own behavior and make good decisions. Being disciplined is not always easy, but the rewards generally pay off in the long run.

As your financial advisor, we provide discipline for your financial life, through our investment strategy and guidance. We develop an investment plan for you, which is a guide that we adhere to, regardless of the volatility of the stock market or other world events which we cannot control. We do not follow fads, trends and “forecasts.” Being financially disciplined has had significant benefits and has helped us to avoid potential financial mistakes.

In 2008-2010, when the US was in the midst of the financial crisis, many economists and market forecasters were predicting that the US would face very high inflation in future years, due to the actions of the Federal Reserve. Fortunately, we did not make investment guesses on the direction of interest rates, based on these predictions. The “predicted” high inflation has not occurred. We stuck to our fixed income philosophy, of buying high quality bonds over varying maturities. We adhered to our fixed income investment discipline.

We remain disciplined to our core stock philosophy of investing in a globally diversified manner, which means to invest a significant portion of a stock portfolio outside of the US. While the US stock markets outperformed International stock markets in 2014, we knew that would not always be the case. In the first months of 2015, International stock markets have significantly outperformed the US stock market. Being disciplined and not trying to time the global markets is the right strategy. Our goal is to provide you with a good investment experience. Being globally diversified is a key element to reduce volatility, which allows you to have the discipline to stick with your investment plan.

It takes discipline and effort to write this blog every week. It is not always easy. But the effort is worth it. Writing every week encourages us to be aware of topics that are relevant to you. The practice of regularly writing enables us to provide you with our thoughts and analysis on current issues.

Writing these weekly blog posts gives us an opportunity to provide you with a greater understanding of our investment philosophy. The more you understand the investment strategy, the more confidence you will have. The more confident you become, the more likely you will be to adhere to your investment plan, especially in the face of the uncertainty and volatility that are always with us. And that will lead to successful investing and a better financial future for you and your family.

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