Smarter Planning, Smarter Investing™
The comprehensive financial plan we’ll create for you, Your 360° Future™ Blueprint, includes investment recommendations to help you pursue your financial goals. To keep you moving forward toward these goals, we developed Smarter Planning, Smarter Investing™, a dynamic investing philosophy based on our investment research and decades of investing experience. The four pillars of Smarter Planning, Smarter Investing™ are described below.
As your INVESTMENT FIDUCIARY, in our Advisory Capacity, we will steadfastly uphold our responsibility to…
Act in your best interest
Give you our undivided loyalty and utmost good faith
Refrain from any activity in conflict with your interests
Provide full and fair disclosures of all material facts
Facts matter, and our EVIDENCE-BASED INVESTING approach incorporates…
Economic Research
Actual Market Data
Index Investing
Evidence-Based Investing takes into consideration all economic and investment research of the last 90 years, including modern portfolio theory, the efficient market hypothesis, the magic of compounded investment returns over long periods of time, and the difficulty active investment managers have in consistently beating their respective indexes.
"We build investment portfolios based on facts, not emotions or hype, with an intense focus on risk management."
- Jeff Sandene, CFP®
Our RISK MANAGEMENT process pays attention to the secular trends of financial markets and recognizes the difference between signal and noise in the reporting of financial news, such as…
Price Volatility
Market Signals
Recession Impacts
Risk Management techniques are employed, when appropriate, to counter the long-term cycles of financial markets. Market cyclicality can be characterized as either ‘volatility to ignore’ or ‘volatility to respect’.
Volatility to ignore is important to recognize because it can lead to serious investor mistakes. Temporary losses often exceed 10%, and the rebounds from these periodic corrections can be swift, making it perilous to attempt market-timing strategies. Volatility to respect is usually associated with a recession.
There have been fourteen U.S. recessions in the past 90 years1. The average stock market decline associated with those recessions is over 40%2. Stock market losses during recessions have plenty of corroborating market and economic evidence.
Paying attention to market and economic signals and executing a ‘rules-based’ investment management process may result in avoiding the worst segments of recessionary bear markets.
Our training in BEHAVIORAL ECONOMICS adds an extra dimension to our investment strategy by avoiding these common investing traps…
Cognitive Biases
Emotional Mistakes
Irrational Investing
Behavioral Economics is the study of how people’s money and investment decisions are impacted by scores of emotional and cognitive decision-making biases and heuristics, including loss aversion, bandwagon effect, and confirmation bias. Behavioral economics identifies the sources of people’s money mistakes and decision-making shortcuts, thereby casting a shadow upon the ‘rational investor’ and ‘efficient market’ assumptions underlying much of traditional economics and shining a new light on decades of economic and investment research.
1 Federal Reserve Bank of St. Louis: Federal Reserve Economic Data, 12/26/2018. 2 Yardeni Research: S&P 500 Bull and Bear Market Tables, 2/18/2018.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All investing involves risk, including loss of principal. No strategy assures success or protects against loss.
Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC
"Investing is simple, but not easy."
- Warren Buffett
At Sandene Strategies, our proprietary process for creating your customized financial plan is Your 360° Future™ Blueprint, a cash flow-based, comprehensive analysis of your entire financial and life scenarios.
Your Future is Now