A Conversation with EP Wealth Advisors Director of Portfolio Strategy - Adam Phillips, CFA®, CFP®
Often quoted in major national media, Adam is a Chartered Financial Analyst (CFA®), a CERTIFIED FINANCIAL PLANNER™ (CFP®), and has been included on the Forbes Next Gen Best-in-State Wealth Advisors 2019 list. He is a member of the CFA Society of Los Angeles and the CFA Institute. Adam helps establish asset allocation strategy as a member of the EP Wealth Investment Committee, which supports all EP Wealth Advisors and their clients. The Committee’s top-down approach to portfolio construction begins with an outlook on the economy’s likely direction, followed by the implications for different economic sectors and asset classes. This culminates in strategic selection of the individual stocks, bonds, mutual funds or other investments deemed most appropriate for each individual client’s portfolio.
Get the Bigger Picture of Financial Market Trends
There’s so much financial information out there, all the time, that it can be a challenge to recognize when the real story isn’t necessarily what’s being conveyed by the headlines. If you want to cut through the noise to hear the real news, you need to drill down into the news you’re following to evaluate all the relevant information available. Only then will you have a view of the bigger picture, which may be very different from what’s suggested by selected headline statistics.
Recognize Data that Helps Assess Market Fluctuations
Let’s take, for example, retail sales. With the consumer representing about 70 percent of the economy at the beginning of 2020, sales to consumers became the major factor carrying the weight of the economy, with businesses on the sidelines waiting for trade issues to resolve themselves. Then out comes a new retail sales number that appears to be good—up 0.3 percent over the previous month. However not every article carrying this news mentioned that only five of the thirteen retail groups reported growth over the prior month. This may suggest that the outlook isn’t nearly as promising as the headlines indicate, and perhaps you should be prepared for market fluctuations in a more negative direction. Without digging for comprehensive details, you might not have an accurate understanding of how current market conditions affect your planning.
How Can You Benefit from a Strategic Approach to Investing?
With a staff of professionals and access to sophisticated analytical tools, EP Wealth offers a comprehensive range of services to help you invest with greater insight, as well as develop a holistic wealth management strategy. To discuss your finances and investment goals, we invite you to contact one of our advisors.
This is #6 in the Informed Investor “How to Build Your Investment Portfolio” series. Other topics include Asset Allocation, Why We Diversify, How to Buy a Stock, How to Buy a Bond, Concentrated Positions, etc. For more information on our investment process, check out our investment management page or ask for a Portfolio Review.
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