Market fluctuations are inevitable and often amplified by financial headlines and sensationalist news outlets hosting a variety of business news pundits.  

At EKS Wealth Management, our process starts and ends with you.

Our investment process is informed by the planning process. It is created, allocated and built to achieve your life’s goals.

Our proprietary rules-based investment process can help you have the confidence and focus to make great financial decisions in both good and challenging environments while avoiding potentially harmful financial decisions that may be clouded by emotion or lack of clarity. 

The financial markets, like life, will have their ups and downs. We will be there to help you navigate through it with confidence and clarity – and we are always here if you need advice or guidance.

Now that the markets are more turbulent, should I still be in passively managed index funds?

Indexing can be a great strategy for rising markets. The old adage “a rising tide lifts all the boats” applies here. However, we also know that when the tide goes out, the falling tide lowers all the boats too.

In down markets as in up markets, there is no management. You own it all. This usually bothers folks more in down markets.

We have found that people like to know what they own and prefer to have a process that involves a sell discipline or a process that prompts them when to sell a particular investment during down markets.

When you own an individual company and understand why you own it and, more importantly, what would prompt you to sell it, you become a more confident and committed investor. 

This allows you to focus on your investments and your strategy rather than the markets. When you index, you own the markets and so you are more concerned with this general abstraction. Would you rather worry about the direction of the markets or focus on owning great companies that have growing earnings and/or dividends?

We have found that people are better fortified to withstand the tide going out or down markets and make less mistakes of buying and, especially, selling at the wrong time when they have an investment process that involves owning individual companies rather than abstracted indexes, whether in the form of mutual funds or ETFs.

Any opinions are those of the FA and not necessarily those of Raymond James.

Investing involves risk and you may incur a profit or loss regardless of strategy selected.