Investment Performance vs Investor Performance—what’s the difference?

September 15, 2022

While market volatility will no doubt have an impact on investment performance, it’s also a good time to focus on our own performance as investors.  Buying low and selling high is sometimes easier said than done.


What goes up can always go down, and vice versa!  The day-to-day movements in the markets can make you feel like you’re on a roller-coaster.  But the key is to remind yourself why you got on the ride in the first place!  Over the long run, staying diversified and maintaining a disciplined investment approach will help pursue your financial goals.


Avoid the knee jerk reactions.  The media perspective can sometimes create a sense that the world is ending.  The most important benchmark to consider is not the S&P or Dow Jones index, the important benchmark is your progress toward your long-term goals.   Have a conversation with your advisor about the impacts these market movements are having on your overall ability to reach your goals.


Seize the opportunity!  Often in down market cycles it’s easy to overlook the power of your portfolio.  If your investments are generating any sort of dividend and those dividends are being reinvested, you are executing on that fundamental investment rule, Buying Low.  And it’s happening automatically for clients.  Buying shares at lower prices, whether through reinvested dividends or cash on hand, is one of the best ways to take advantage of this opportunity.


In these times, the investor who can ride through the peaks and valleys tend to come out ahead.  Avoid letting fear guide your decisions.  Talk with your advisor frequently if necessary.  They stand ready to answer questions and provide perspective. 

*The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

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.

Dividend payments are not guaranteed and may be reduced or eliminated at any time by the company.