US EQUITY STRATEGY BENCHMARK ANNUAL RETURN CHART (2008 – 2017)
Legend: Cp = Competitive Position | Ec = Economic Conditions | Fg = Future Growth | Mc = Market Conditions | Q = Quantitative | O = Opportunity | P = Profitability | R = Risk | Sc = Social Considerations | V = Valuation | Ix = S&P 500 Total Return Index. For more information about AthenaInvest’s Strategy Framework, see https://athenainvest.com/company/academic-foundation/strategy-framework/. Source: S&P Dow Jones Indices LLC, AthenaInvest, Inc.
The last decade appears to have been good for growth or the index, but even in this period different strategies have done well in different years. Over longer periods of time the ranking is even more varied. Investors have short time horizons and want consistent results. Unfortunately, investment returns don’t come in steady streams each year. Investment managers on the other hand, have a long-time horizon and build their research methodology and investment process to take advantage of specific opportunities over long time periods, i.e. 10 years or more. This time horizon mismatch along with wide variations in yearly performance creates investor anxiety and the ever-present question of “Should I change strategies or fire the manager?”
Changing strategies and managers each year is investing roulette that delivers poor results. A better approach is to strategically allocate among different strategies and select managers who specialize in their area of expertise. Over time, these managers will do well at different times and in a variety of market conditions. This strategic investing approach improves performance consistency and helps investors to stay on track. In addition, it gives managers the time they need to gain the full benefit of their investment strategy which in turn allows investors to reap the rewards of their skill.
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IMPORTANT INFORMATION AND DISCLOSURES
The information provided here is for general informational purposes only and should not be considered an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. It should not be assumed that recommendations of AthenaInvest made herein or in the future will be profitable or will equal the past performance records of any AthenaInvest investment strategy or product. There can be no assurance that future recommendations will achieve comparable results. The author’s opinions may change, without notice, in reaction to shifting economic, market, business, and other conditions. AthenaInvest disclaims any responsibility to update such views. These views may not be relied upon as investment advice or as an indication of trading intent on behalf of any AthenaInvest representative.
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