Content provided by J.J. Schenkelberg, CFA, CLS Senior Portfolio Manager
Trust is a key feature surrounding the financial and investment industry. Our clients trust their advisors to help safeguard their assets and grow their financial security. Our advisors trust CLS Investments to carry out the plan they have set forth for their clients and choose the appropriate investment securities to meet their needs.
Trust is a key feature we have to deal with in all facets of our lives. As a ‘type A’ personality, this can become difficult for me sometimes. My family will readily tell you that I analyze everything too much, and I frequently worry about too many things that are out of my control. As a parent, I worry every day about my children. Are they getting along with others? Are they being picked on at school? Are they treating others with respect? Are they concentrating on their schoolwork as they should? Are they happy? Am I helping them make the right decisions?
Yes, I’m a ‘type A’ mom. I love being there for my children, picking them up from school and cheering them on with their activities. But, I’m not the mom calling the school every week to make sure the teacher pays them attention or buttering up the coach to try and get more playing time. Although, sometimes it’s difficult not to be that mom. Sometimes the most difficult thing to do in life is trust that good things come to those who are honest, kind and treat others with respect, and that we can trust our children to make the right decisions.
As portfolio managers, we trust in our education, experience, and ability to choose strong investment portfolios that meet clients’ needs. With rapidly moving prices, the market can twist and turn in unexpected ways. Many of these movements are created by investor behavior that has nothing to do with actual investment value. We spend our time determining the underlying value of the investments we choose for our clients and ensuring the price we pay for the investment is reasonable and attractive. Once we choose an investment, we need to trust that our education, experience, and ability have led us to a wise choice and constantly review to make sure the factors that helped us make that decision remain sound and relevant.
Following the market decline in 2008 and 2009, I was asked frequently what lessons I learned. Having begun my investment career in 1996, I’ve invested through the burst of the technology bubble as well as several financial crises. More than anything, these experiences reinforced my trust in the investment market to return to fair market prices, as defined through my education and experience. Occasionally, the market, or people in our lives, may weaken our ability to trust. What I have learned is that no matter what curveballs our children, or the market, throw our way, we can all see success on the other side if we live well and remember to trust.