Broker Check

Why Risk Based Investing?

While markets go up and down in the short term, over the long term, the trend is up.  Since 1926, the S&P 500 has had positive returns 73% of the time. Once invested, it’s not a rising market that starts the ruthless cycle of poor individual investor behavior, it is a falling market, hence our focus on risk.

We believe that many investors are unknowingly invested in portfolios that exceed their true risk parameters. In a falling market environment, many of these investors eventually capitulate by exiting the market and locking in losses.  Once out of the market, only then does the rising market environment become troubling to investors’ relative performance as he or she must now determine when to re-invest.  This typically occurs in the later stages of the market recovery after receiving significant confirmation that the market is again in a rising environment.  We’ve all seen the typical emotional roller coaster chart that pundits talk about, yet no one has offered a solution to eliminate it – until now.

Given the market is rising nearly three-quarters of the time, it is the willingness and ability to stay invested that will provide investors the chance to achieve better long-term performance while avoiding the risk of market timing and other behavioral biases that come into play.

After reviewing decades of investor behavior in various market environments, we believe the only way this will occur is if the investor defines his or her risk tolerance and aligns it to the appropriate investment strategy, prior to investing.

 

Cynthia De Hart, MBA

Marketing Director

352-350-2008

(352) 350-2103

cynthia.dehart@lakeag.com

Cynthia joined Lake Advisory Group in the fall of 2020 as Marketing Director. She earned her MBA in Marketing from Xavier University and her Bachelor of Arts in Economics and Art History from Denison University. After her...

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Joshua Simpson, MBA

Vice President Operations

352-350-2008

(352) 350-2103

josh.simpson@lakeag.com

Josh joined his father, Keith, at Lake Advisory Group in 2014. In 2020, he earned his MBA from St. Leo University in St. Leo, Florida. Josh uses disciplined research and analysis of industry investments and his broad knowledge of...

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Keith A. Simpson, MBA

President

352-350-2008

(352) 350-2103

keith.simpson@lakeag.com

As a fiduciary, Keith lives his values: hard work, discipline, and doing what is right by the client. Keith joined Lake Advisory Group in 2009 and liked it so much he bought it in 2015. Prior to joining Lake Advisory Group Keith was a...

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