The Trail FP Approach to Investment Management

Our methodology of managing investments may be considered in three layers:

1. Our philosophy – What we believe
2. Our strategy – How we structure our investment management service and choose investments
3. Our tactics – The actions we take

An analogy could be to coaching a sports team, maybe a soccer team.  The philosophy might be, “hard work and team work will lead to success.”  The strategy might be “to score more goals” through a structural formation with an extra offensive player, and one fewer defensive player position.  The tactics would be the actual players, a training regimen, player fitness, the game play, etc.

Investment Philosophy.  We believe in the power of the stock and bond markets to deliver investment returns, and set prices efficiently.

Investment strategy.  We design an investment strategy based on a person’s needs and goals.  The two primary considerations are:

• Time frame – when money will be needed, and how certain that need is
• Risk tolerance&capacity – what level risk vs. return does a person want (tolerance), and need (capacity) to achieve their long-term planning goals?

Tactics.  We recommend particular investments to achieve the strategy.  In general:

• For long-term investments, we recommend passively managed investment vehicles characterized by robust diversification, low turnover, and low fees
• For short-term investments, our recommendation are personalized to the particular need.  Typical recommendations are cash, short-term bonds or CDs
• Values-based investing.  For clients interested in incorporating environmental values related to sustainability criteria, click on the button below to learn more about our approach.

To pursue a better investment experience, we embrace ten ideas/thoughts/strategies (sort of a mix of philosophy and strategy).  Those ideas are listed next.  To accompany each idea, there is a visual in the “image gallery” below the list.  To view each image, hover over it and arrow/swipe through.

1. Embrace Market Pricing
2. Don’t Try to Outguess the Market
3. Resist Chasing Past Performance
4. Let Markets Work for You
5. Target Higher Returns (many of our clients, but not all, are interested in this strategy)
6. Diversify Globally
7. Avoid Market Timing
8. Manage Your Emotions
9. Look Beyond the Headlines (in the news)
10. Control What You Can Control

Disclaimer
Investments involve risk. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee that investment strategies presented herein will be successful.