The Foundations of SignalPoint – Discipline

The Foundations of SignalPoint –
Our Values : Discipline

Maintaining a discipline is something everybody talks about but for many people this maintenance is often a lot more difficult than it would seem. When things go as planned and everything stays in line with expectations, the discipline people wish to create or achieve comes easily. But then life likely throws one of its unexpected left hooks, leaving a person reeling and looking for answers. In these moments, being disciplined takes incredible effort.  

Many aspects in life require a concerted effort to maintain a sense of discipline: raising a family, developing an open, healthy relationship with a spouse, or dealing with the demands of work each day. All of these require discipline in order to do them well. In the world of financial services, specifically investment management, it is no different.

Despite best intentions, many investment advisors and financial management firms choose to chase performance and overreact emotionally to swings in the market. Their long term strategy is cast to the wayside by the caveat “We reserve the right to adapt to market conditions.” The promise to their clients and the so-called “plan” intended to be carried out over many years is rendered useless by the advisor’s or the firm’s unwillingness to administer discipline in their investment strategies.

At SignalPoint, we make a consistent effort to practice discipline. In fact it is one of the foundational values of our organization. This discipline takes shape in several of the following ways.

We don’t unnecessarily react to recent market activity. A portfolio is based on the long-term needs of our clients, so we believe it should be maintained for the long-term. It doesn’t matter what’s going on in the markets today; by managing, building, and holding a portfolio for the long haul, we believe that we are enabling clients to achieve lifelong financial goals.

We have created and maintained investment strategies and philosophies that drive our interactions with every client. Our philosophy for investments act as a guide to follow whenever the market inevitably faces its natural swings. We are not opposed to change, yet we are guided by foundational principles and strategies that guide us in each day, year, or investment lifetime. We maintain portfolios and our investment philosophy with consistency. Markets are constantly changing and never remain at their current levels for long, yet we believe that our philosophy enables us to tactfully and effectively manage portfolios through all market conditions.

Some may say that our strategy doesn’t offer flexibility to react to what’s happening in the markets today.  Well, that is, in fact, what discipline means! This commitment to the plan and our clients plays a significant role in allowing us to bring our clients the success they desire and need for their financial future.

Discipline is an easy topic to read about, it’s likely that you read this article in five minutes or less. It sounds easy enough, yet in real life, it’s not nearly that simple. Practicing disciplined investment management strategies requires effort, yet we provide many of the tools and services in order to do so.

As a firm, we must remind ourselves to maintain this discipline. We know that this effort to be disciplined provides clients with the service they deserve.

– The Team at SignalPoint Asset Management