The “Can You Sleep At Night” Test

The markets of the earlier part of the last decade and the recent past taught me a great deal about the words above. I want my clients to be able to sleep at nights and not worry about their investments.

I don’t claim to be able to take the volatility out of the markets, I don’t think anyone can claim that. But my focus is to reduce volatility as much as possible.

I attempt to achieve this through diversification in sectors, the use of  exchange traded funds in particularly volatile sectors instead of buying the stock of individual companies, the use of preferred stocks and I am also not afraid to sell an investment that is under performing or has run up in value and is now faltering.

I also believe that a heavier weighting in cash is an acceptable position in some markets. To be 100% invested is sometimes the worst position.

I work with all my clients to understand their risk tolerance lever and to find out what keeps them awake nights about investments.