First of all, we’re all human, and we have to recognize that a well-designed investment strategy is instrumental in positioning clients for long-term investment success. So part of our process is to understand the behavioral aspects of investing and how individuals may respond throughout different markets conditions.
At Schwab Asset Management, were proponents of developing a dynamic investment solution that consider investors’ behavioral biases and their evolution through market cycles. We believe this means that sometimes the best outcome for an investor is having the ability to sleep soundly at night instead of capturing the highest return. This is also why we are advocates of helping advisors employ a process that helps merge the emotional experience investors want with the investment results they need to achieve their long-term financial goals. It’s art and science at its best.
In my role as a CIO, my team aims to design investment portfolios that encourage constructive investment behavior through long-term diversified risk-appropriate investing. We do that with three foundational concepts: Stay invested, stay diversified, and stay disciplined.
Disclosures
Information provided herein is for general information purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.
This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice.
Diversification strategies do not ensure a profit and do not protect against losses in declining markets.
Schwab Asset Management® is the dba name for Charles Schwab Investment Management, Inc. Schwab Asset Management is a subsidiary of The Charles Schwab corporation.
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