Risk Management
Risk Management. As stated under Team Bios, William wholeheartedly believes a successful investor who participates in the markets must have a firm understanding of both Fundamental Analysis and Technical Analysis (stock charts). This combination of knowledge guides investors towards prudence, especially in not entering the market prematurely, getting out too early when a stock runs, and in getting out before it’s too late. More specifically, not to ride a security way up only to ride it back down and lose money in the end. In William’s experience most investors who suffer such consequences, do not have an exit strategy planned ahead of time, a critical element of investing and realizing gains and profits.
William’s risk management strategies include:
- Discouraging clients from buying into a bubble
- Discouraging clients from panicking and selling investments during bear markets or sudden market sell-offs due to business, political, and/or economic news
- Encouraging clients to have an exit strategy for their employer stock option plan
Having had experience in the best market in history (late 1990s) and one of the worst bear markets in history, years 2008-2009, William has experienced multiple bull and bear markets during his career. He has also extensively studied all bull/bear markets in U.S. history to understand and identify cyclical trends and more. Knowledge and experience is everything when it comes to investing and navigating through the volatility of the last two decades, William has gained an insurmountable amount of knowledge about investing in securities.
With LPL Financials back-office support and resources and William’s experience, he is able to seamlessly research and identify investments that are undervalued, in particular low risk set ups for potential home runs. In his experience, when an investor buys low, the 1-5 year track record looks terrible. But in most cases, the next 1-5 years become momentous growth years for the stock. Given investing is all about strategy, not all stocks or investments are going to work and that is precisely why William manages risk by recommending asset allocation strategies based on position size and sector diversification.
Having seen first-hand how Wall Street titans lost fortunes during the financial crisis, William was left amazed at how leading financial experts failed to see it coming, not even well enough to protect their own personal wealth. Witnessing how the financial crisis affected retirees in particular, it is William’s personal goal to protect clients on their path to retirement and that means diversification. Lastly as part of educating clients on risk management, William shares all of his past investment strategies, highlighting the winners and losers as well as how to avoid misleading news and information made by individuals and institutions, which may have adverse effects on client investing decisions.
