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Our Investment Philosophy

At Encore Wealth Management we are dedicated to helping our clients make the best possible investment decisions. Our investment philosophy is based on a rational set of core beliefs that rely on analysis and thorough research versus following market trends.

1. Fundamentals and valuations rule over the long term. Investments have value ultimately because they are expected to generate tangible wealth. A bond’s value is a function of the interest it pays and the expectation that principal will be paid when it matures. A stock’s value is based on the underlying company’s cash flow and its ability to grow. Investments compete with each other for investor capital based on expectations.

2. Markets can be irrational which creates opportunity in the long term. Markets are driven by valuations and fundamentals over the long run, but can be driven by fear and greed over shorter time periods. When investors are overly optimistic or pessimistic, asset prices can disconnect from their fundamental value; creating market opportunities.

3. Patience is necessary. Anything can happen in the short term, but in the long term the underlying fundamentals of an investment will drive returns. We believe our patient investment approach is an advantage that will allow our clients to ultimately reap the benefits of the strong linkage between securities prices and underlying fundamental value.

4. There are few certainties in investing so diversification is prudent. Our approach to asset allocation requires that our investment decisions are supported by odds that are heavily in our favor. However, we can never be 100 percent certain and markets can remain irrational for uncomfortably long periods of time.

5. Expanding portfolios to include new investments is an advantage. Over time asset opportunities evolve and new investment categories are created. Values based exchange traded funds and buffered structured products are examples of new investment opportunities. We believe in thinking broadly and not limiting portfolios when new opportunities present themselves.