Stay empowered to persist

Genevieve Signoret

Letter from the President

Try looking at the scale less often

Except for the short-term liquidity portfolios we manage for treasuries and individuals, the shortest-term portfolios we manage have investment horizons of at least six months. Yet, some of our newer clients have the habit of checking their portfolios at least once a day. Yet, even when markets are trending up, they’re fluctuating constantly, so this can cause needless stress. Also, in volatile times like these, this habit can cause discouragement or a temptation to sell. To help clients shift habits, I find it useful to ask, “Have you ever lost weight? To track your weight, what works better for you, to look at the scale every day or just once a week?”

Usually they answer “Once a week works better”. Some even answer “Once a month”!

Unless you’re a day trader, try applying this to your portfolio. Look at it, say, once a week, or even once a month.

This change in habit will fix your attention not on misleading daily fluctuations but rather where it matters: on the trend.

Moreover, it will keep you serene and motivated, hence empowered to persist.

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Previous Letters from the President

Seizing on this moment and congratulating you (2014 10 17)

A buying opportunity (2014 10 16)

5 reasons not to participate in Alibaba’s IPO (2014 09 16)

2014–2016 Outlook: Low for long (2014 08 29)