Successful long-term investing begins with an advisor creating an investment plan based on market principles, informed by financial science, and tailored to a client’s specific needs and goals. Along the way, an advisor can help clients focus on actions that add investment value, such as managing expenses and portfolio turnover while maintaining broad diversification. Equally important, an advisor can provide knowledge and encouragement to help investors stay disciplined through various market conditions.

Each of these tenets below are critical in helping investors navigate today’s challenging markets and reach their financial goals and objectives. They are most powerful and effective when used together to develop a holistic wealth strategy.


Volatility is Normal

Though uncomfortable, volatility is normal. Dips in the market can’t be predicted, yet they can be expected. Instead of reacting emotionally, consult your advisor to help put a plan and allocation in place to stick out the volatility.


Don’t Try to Time or Outguess the Market

You will never know how market segments will perform. By holding a globally diversified portfolio, investors will be well positioned to seek returns when they occur. In addition, the markets pricing power works against active managers who try to outperform through stock picking and market timing.


Diversification is Key

A well-diversified portfolio gives investors a better chance of success despite market downturns, geopolitical conflicts and natural disasters. Diversification helps reduce risk, and global diversification can help.


Avoid Emotional Biases and Manage Emotions

Investors have inherent behavioral biases that can hinder investment goals. Where we live, our field of work and how we think about the past can have an influence on investment choices. In addition, many people struggle to separate their emptions from investing.  It’s important to be aware of biases and emotions, and consider enlisting an advisor who can help keep you on track and minimize these influences.


Cash is not a Viable Option

Cash is no longer a safe haven or a source of income. Low interest rates have pushed yields down, making the return on cash less than the inflation rate. Remember, if you have cash sitting on the sidelines, it is missing out on a bull market.


Stay Invested

Timing the market can be a dangerous habit, and very hard to do. Market lows can result in emotional decision making. Though markets can have bad days, weeks, months or years, investors are less likely to suffer losses over longer periods. The financial markets have rewarded long-term investors.


 Important Disclaimers:

Past performance does not guarantee future results.

Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

For more information regarding Callan Capital, please refer to our most recent Form ADV Part 2A which may be found at

Callan Capital does not provide individual tax or legal advice, nor does it provide financing services. Clients should review planned financial transactions and wealth transfer strategies with their own tax and legal advisors. Callan Capital outsources to lending and financial institutions that directly provide our clients with, securities based financing, residential and commercial financing and cash management services.

The views expressed are those of Callan Capital, LLC. They are subject to change at any time. This thought piece expresses the views of Callan Capital as of April 2018 and such views are subject to change without notice.