Staying Focused & Disciplined
After many quarters of strong advances in global financial markets, we finally experienced a normal, random, temporary decline in the first quarter of 2018. Frankly, this is long overdue from a historical perspective. And although neither we nor anyone else has any clue as to how long or how deep this temporary decline will last, the one thing we do know about past market declines is: All declines have been temporary while the long-term advance is permanent. Anything to the contrary is simply ignoring historical evidence. And as you know, we here at ISI rely on clear, academic evidence as guidance for how we invest and plan on your behalf. By doing so, this rejects the dangerous, damaging and misguided approach used by the majority of other investors (both individual and professional), which is nothing more than speculating and gambling. By using evidence-based investing principles as the foundation for all of the investment strategies we utilize on your behalf, you can remain confident and focused on the future even during times of normal, temporary market declines.It’s my hope that you find this quarter’s review informative. Specifically, I urge you to focus on page 5 of this review, which puts all of the headline events and market fluctuations we have experienced over the past year and 17+ years into proper perspective.Finally, we’ve included an excellent article written by Jim Parker of Dimensional Fund Advisors comparing the similarities of sailing to the real-life journey of investing and the extreme importance of having a financial plan and sticking to it.