Counsel Trust’s mission is to preserve and enhance your wealth. Portfolios are tailored to each client’s needs for growth and income while minimizing downside risk, crucial for compounding wealth over time.
As a fiduciary, we are committed to the highest standard of care, always acting in our clients’ best interests.
We recognize the long-term damage emotional market downturns can cause.
For instance, a 30% loss requires a 43% gain to break even, and a 40% loss requires a 67% gain. Broad diversification and a disciplined global asset allocation plan can mitigate losses, providing a stable base for future growth.
Broad diversification and maintaining a disciplined global asset allocation plan can mitigate losses, thus maintaining a more stable asset base on which to build future growth.
Our investment philosophy
Our investment philosophy centers on the efficiency of global securities and capital markets, meaning security prices reflect fair values based on fundamentals over time. Mispricing can occur due to market emotions, but research shows that market timing and rapid trading harm portfolio values and add costs. Timing the market—jumping in and out of stocks based on short-term projections is risky.
For example, a market timing investor begins with a $100,000 portfolio in 1990. In an attempt to predict market fluctuations, the portfolio remains un-invested during the stock market’s five best single-up days throughout the 12,045-day period from 1990 to 2023. By the end of 2023, the portfolio would total $1,719,300 instead of $2,722,100, resulting in a significant difference of $1,002,800 (approximately 37% less), likely due to incorrect market timing strategies.
If the 25 best days are missed, the portfolio would total $577,900 rather than $2,722,100, leading to an extensive opportunity cost of $2,144,200 (around 79% less).
Maintaining reasonable prices, emphasizing quality, and ensuring broad diversification are essential elements in wealth accumulation. Broadly diversified investments, including low-cost institutional mutual funds, exchange-traded funds (ETFs), real estate investment trusts (REITs), and actively managed portfolios comprising individual stocks and bonds, are curated to tailor your portfolio.
To augment the investment resources accessible to you, Counsel Trust has established a strategic partnership with Northern Trust Investments, Inc., which offers asset allocation, securities, and economic research. Our collaboration with Northern Trust aids in delivering comprehensive economic analysis and asset allocation recommendations for our wealth management clients.
Not overpaying, emphasizing quality and broad diversification are additional keys in building wealth. Broadly diversified investments, including low-cost institutional mutual funds, exchange traded funds (ETF’s), REIT’s and actively managed portfolios holding individual stocks and bonds are selected to customize your portfolio.