12 Key Pieces of Investing Advice for Advisors

As 2021 comes to close, LPL Financial Director of Research Marc Zabicki celebrates the upcoming holidays by putting a spin on the “12 Days of Christmas” with 12 pieces of investing advice for advisors.

There are 12 key things advisors need to be successful. This includes a sound investment philosophy, a robust risk management plan, and the proficiency to differentiate between price and value.  The list goes on to include the wisdom of recognizing fixed income as their primary counterweight against equity risk, the ability to not follow the herd, and the power to make rational decisions. 

After this is the ability to follow a long-term plan, the fortitude to stick to that plan, and a consistent portfolio rebalancing strategy.  The last of the 12 items are the power to discern between news and noise, the aptitude to build a portfolio out of multiple asset classes, and the ability to overcome recency bias.

While equities may still move higher, it likely won’t be a repeat of 2021. A shift in policy from the Federal Reserve could lead to relatively modest equity gains and higher volatility.  These key pieces of advice can help advisors stay vigilant throughout the changes we may see in 2022.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth in the podcast may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. All indexes are unmanaged and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index data is from FactSet.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This Research material was prepared by LPL Financial, LLC. 

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