Golf & Markets: Course Management for Success
Regardless of how good you are at golf, it’s easy to hit a bad shot. Even the pros on tour find themselves in the rough trying to save par sometimes. The stock market is no different. Markets will go down from time to time and investors will have to navigate their way out of the hole. On the golf course they call this “course management”. Part of a good course management is knowing when to lay-up – shoot conservatively to avoid trouble ahead.
Most pros would agree that knowing when to lay-up can make or break a round. This is where golf is like investing – it’s all about risk management. If you manage the course properly, you can give yourself a better chance of a low score – just like you can generate better long-term investment by sticking to a proven strategy of diversification and low-volatility investing.
Avail CPA’s strategic partnership with WealthCo Asset Management can help you manage through the course. Through the end of 2018, the US equity market was down 1.7%, the Canadian market was down 10.1%, and bonds were down 2%. There has been nowhere to hide for the conventional 60/40 investors, but the WealthCo medium-risk-model portfolio is up to 4.74%
Because WealthCo’s investments are diversified beyond the typical 60/40 stocks and bonds portfolio, you have a better chance at strong investment returns through times of adversity. By managing your risks properly, not only can you achieve better results, it’s also easier to recover after a loss.
Is now the time for you to lay-up? Do you need some “course management” help? To find out more about Avail Wealth Planning and navigating the ups and downs of today’s markets, talk to Tyler Brack, CPA, CA, CFP.