There is no single “right” way to invest. But there are many wrong ways that should be avoided, and doing so can improve your long-term results. We go with what academic research suggests, and leave personal opinions and emotion out of the equation. Below is a summary of our investment strategy here at Arcadia Private Wealth so you can decide if we are a good fit for your needs.

Markets are Efficient

We believe that financial markets are generally efficient and have created extraordinary wealth over time. Most investors react to markets, trying to figure out what is coming next. Instead, we build a financial plan and a portfolio allocation that can handle whatever the markets throw your way. The path to long-term investment success is a disciplined course through the markets’ inevitable ups and downs.

Expenses Matter

We believe that expenses matter for investors’ long-term results. Our goal is to minimize investment expenses and management fees. What truly matters for our clients is returns net of fees and inflation.

Incorporate Market Information into Your Portfolio

We believe that diversification is necessary, not just within asset classes, but among investment strategies as well. Not all companies are created equal; therefore, not all stocks should have the same expected return into the future.  Academic research has uncovered additional company characteristics that have historically rewarded investors with incremental returns.  We choose to combine the best of both active investing along with passive management.  This hybrid “factor investing” is a systematic approach, incorporating market information to target dimensions of higher return.

Behavior in Market Volatility is Crucial

We believe in planning for the long-term but recognize that periods of market volatility are inevitable and will challenge even the most seasoned investors. Market volatility also provides extraordinary buying opportunities. We work hard to equip clients with discipline and guidance throughout their lifetime investment journey.

Invest Globally

Investing in your home country has its benefits; however, ignoring the rest of the growing global economy often comes as missed opportunity. We believe that investors should be pragmatic but optimistic about the future of the global economy. There’s little reason to invest if you don’t believe tomorrow’s world will be better—more productive, richer—than today. When you do believe that, you can ignore markets forecasts, knowing you’re buying long-term stakes in the bright future of the global economy.

Asset and Tax Allocation is Important

The decision of how much risk (stocks) to incorporate into a portfolio has significant ramifications on long-term wealth. We carefully guide clients in determining the optimal allocation between stocks and bonds. Not all investment accounts are taxed the same. Investors should pay attention to where they allocate assets to minimize their taxes and maximize their after-tax returns.

Develop an Investment Policy

Investments are a tool used to achieve financial independence and specific goals. We work with our clients each year to map out an allocation among assets that meets their return target and risk tolerance.