M&A Investor Insights (Part 4 of 5): Psychologically Speaking
One of the common thoughts we all experience when there’s a market correction is the idea that we feel the need to do something to make things better. This is a normal human reaction to something negative in our lives and is a very good thing to consider. However, it’s important to note that in working with our financial advisory firm and employing the professional acumen of many award-winning institutional portfolio managers you already have done what you need to do!
Now, if one’s long-term experience with portfolio managers has not produced good results (especially over the last three years when markets have been extremely strong), then one might consider making some important changes. Should I be making some changes this time?... would be a great question to ask! That said, it’s quite a different story if one has experienced tremendously strong returns for numerous years as has been the case with the management teams we generally recommend at our firm.
As we know from experience, markets ebb and flow and even exceptionally great portfolio managers experience downturns if there is a broad change in prices across nearly all sections of the markets. In this circumstance (as we see today), prudence dictates we adhere to the time-tested value in staying the course with current portfolio management teams. This is what our financial advisory firm is recommending for the vast majority of our clients.
Having selected a well-tenured and significantly experienced financial advisory firm in combination with a number of leading institutional portfolio managers and award-winning teams from some of North America’s finest investment firms, you have already made some of the most important decisions to secure your future. Now is the time to allow these professionals to apply their wisdom and carry us through these challenging times just as we trusted them when markets were hot.