At first glance, the two seem very similar. But in practice they’re entirely different, dare I say even complete opposites.
The fact is, from a practice management and financial advisor standpoint – REDROCK WEALTH MANAGEMENT doesn’t have a “market outlook”. We don’t want one, and we don’t need one. In fact, it’s entirely counterproductive to have a market outlook.
A market outlook is just a fancy way of saying “I can predict the future”. Think about it – by it’s sheer definition it’s a predictive statement. Outlook is defined in the dictionary as “prospect of the future”. Tie that to the market(s) and you’re saying you know the prospects for the future of your investment portfolio.
If you know that now, why didn’t you know that prior to today?
Market hindsight is easy. Market outlook is nothing more than a guess based on a set of predisposed notions.
So we avoid the “market outlook” so many firms and financial advisors would have you believe is predictive of the future (yet they burry their outlook in “past performance isn’t indicative of future results).
Rather – we have an investment philosophy. An investment philosophy dictates your overall allocation and strategic plan for a long term investment portfolio. It doesn’t dream of predicting the markets, rather it details how we’ll approach investing today, tomorrow, and in the future to achieve your financial goals.
I’d far rather have an investment philosophy, because it’s not based on a set of preconceived notions, rather it’s based on our clients, the goals they’re trying to achieve, and the most efficient route of achieving those goals over a retirement lifetime!
