Retirement Planning Blog

Answers to Frequently Asked Questions Regarding Financial Planning

Strategic Investing

Posted by Mark Snyder | Aug 31, 2017 12:10:03 PM

Strategic investing, the idea sounds obvious. Shouldn’t all investing be of a strategic nature with the goal to achieve a certain objective?

What’s Strategic Investing?

          Strategic investing is an active, continuous discipline that among other things, aims to remove or lessen the effects of unwarranted, negative risk on your long-term financial future while remaining ready to take advantage of potentially positive investment opportunities which can present themselves at virtually any time.

          Although no one can say for certain what the future of any investment may be, history has given us something of a roadmap and when combined with objective research, skill and experience, we are typically able to make highly informed investment decisions for our clients’ long-term benefit.

          Whether you are a serious investor or someone simply looking to better prepare for their financial future, regularly measuring risk factors for your long-term financial benefit is at the heart of strategic investing.


Strategic Investing

Aiming for Certainty in an Uncertain World
Our dynamic, hands-on, strategic investing approach has been designed with one purpose in mind -- to help you reach your long-term goals. It includes such concepts as recognizing investment risks and opportunities, the effects of macro-economic factors on diversification and asset allocation, how to spot and manage changing investment climates, and coping with economic cycles and seemingly irrational financial markets. Most importantly, we discuss the role strategic investing can play in your long-term investment success.

Strategic Investing is based on:

  • The cyclical nature of financial-market risk factors
  • Changing investor needs
  • Changing market opportunities
  • Objective economic research
  • Recognizing gaps between theoretical finance and real-world experience

Key Strategic Investing Principles:

  • Realizing that market fluctuations can provide risks and opportunities
  • Understanding that risk levels change over time
  • Basing investment allocations on changing risk levels
  • Monitoring and periodically adjusting asset allocations
  • Minimizing risk for long-term success


The Strategic Investment Approach

 Measuring Potential Risk vs. Reward

  • Evaluate measures which have historically indicated past levels of high/low risk.
  • Gauge important risk factors, similar to how an insurance company requires such facts as age, health status and if a policy holder engages in hazardous behavior, in order to develop a risk profile.
  • Understanding that investment climates change, we remain ready to react based on historical models and risk measurement.

Invest when Risk-Taking has Historically Been Rewarded

  • While history does not always repeat itself, it can frequently follow a similar path. We typically aim to “overweight” asset classes that have performed well in similar, past environments.

Take a Defensive Position when Risk-Taking Has Not Been Rewarded

  • Reduce or eliminate positions in asset classes that are likely to underperform vs. competing asset classes or “safe havens” such as cash or bonds which can offer refuge from challenging market conditions.

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Topics: Investment Strategy

Written by Mark Snyder