9 Ways to Pursue a Better Investment Experience

• Embrace Market Pricing:
  • The market is an effective information-processing machine
  • Real-time information help set prices
• Don't try to outguess the market:
  • Only 14% of US equity mutual funds and 13$ of fixed income funds have survived and outperformed their benchmarks over the past 15 years
• Resist chasing past performance:
  • Past performance offers little insight into a fund's future returns
• Let markets work for you:
  • Financial markets have rewarded long-term investors
• Practice smart diversification:
  • Holding securities across many market segments can help manage overall risk
• Avoid market timing:
  • By holding a globally diversified portfolio, investors are well positioned to seek returns wherever they occur
• Manage your emotions:
  • Reacting to current market conditions may lead to making poor investment decisions
• Look beyond the headlines:
  • Daily market news and commentary can challenge your investment discipline
• Focus on what you can control:
  • Create an investment plan to fit your needs and risk tolerance
  • Structure a portfolio along the dimensions of expected return
  • Diversify globally
  • Manage expenses, turnover and taxes
  • Stay disciplined through market dips and swings

Compass Financial Advisors