Why Encore Wealth Management?
At Encore Wealth Management we have always believed that making good investment decisions, even through very difficult periods, must start with a confident and intellectually well-founded commitment to a sensible, rational set of investment beliefs.
A good approach:
- relies on analysis and not emotion to make decisions
- is grounded in hard work and fundamental research
- values intellectual honesty and recognizes that uncertainty will always be present, but that we must be able to make decisions in the face of uncertainty, and that accepts that we won't always be right
- is based on principles that remain valid no matter how difficult the period
Our investment philosophy is based on those principles, and we know that they will stand the test of time.
Core Beliefs Must Withstand Mistakes, Fear, and New Paradigms
Providing investment advice is not easy. As financial professionals, we are called on to make decisions about an uncertain future based only on the incomplete information we have today. Meanwhile our clients' confidence is always at risk of being undermined by the wide range of competing points of view and ongoing stream of short-term news and data that are always available in this age of information overload. Maintaining confidence is critically important, and requires the advisor to honestly convey what can and cannot be known with certainty, and to share an analysis that was used to weigh those uncertainties in order to make the best long-term investment decisions.
Our Core Beliefs
Our overall investment philosophy is based on a belief in diversification with tactical over- and underweighting in asset classes, but only when we believe they offer an opportunity for excess return or portfolio risk reduction that is so compelling that the odds are heavily skewed in our favor.
Intellectual Honesty: We believe this is crucial to investment success. In this context, it refers to our commitment to objectivity and finding the truth. Individuals and firms with strong intellectual ability are a dime a dozen. We believe successful investing requires more than just high intelligence.
Common Sense: The investment business is very data driven. It is also story driven. There is no shortage of points of view about specific investments or the big picture. It is easy to latch onto a story or get excited based on certain data. But we believe it is critical to apply a common-sense overlay to any analysis we consider. At the end of the day any investment or strategy needs to make.
Dig Deep and Verify: We want to make sure that we are aware of all available information that is relevant to our decisions. We also want to make sure the information or data we rely on is accurate. Often in our industry (and everywhere for that matter) information is provided out of context to support a certain point of view. It's our job to make sure that we dig deep and verify.
Extremes Don't Last: There is a central tendency to most things in the investment world. Earnings and economic growth follow a long-term trend line.
Contrarian Flexibility: Opportunities sometimes come along in unusual places. We're willing to look at anything we can understand and fully research. Generally, investments off the beaten path or investments that are unpopular are more likely to be underpriced rather than overpriced. Alternatively, popularity usually leads to highly priced and therefore riskier investments. The good news today is that very few investments are wildly popular.
Analytical Flexibility: A sound decision-process and the discipline to stick to that process are widely viewed as key prerequisites for investment success. However, it is important not to interpret discipline and commitment to process as being inconsistent with flexibility to make adjustments and consider new metrics.
Our belief in the inherent common sense of our investment philosophy drives our investment process, which in turn leads to our commitment to research, confidence to execute our process with discipline. We know our process will continue to evolve gradually as markets and technology evolve and long-term secular forces shift over many years.
*The views and strategies described may not be suitable for investors and may not ensure a profit or protect against possible loss. There is no guarantee that the strategies promoted will be successful or achieve their desired objective. Past performance does not guarantee future results. All information is subject to change or corrected without notice. Nothing herein constitutes legal or tax advice.
*There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
*Tactical allocation may involve more frequent buying and selling of assets and will tend to generate higher transaction costs. Investors should consider the tax consequences of moving positions more frequently.