Experts: Prospering in Volatile Markets Requires Discipline, Perspective

LOS ANGELES, Sept. 1, 2015 /PRNewswire/ -- "Think long-term and eschew inordinate emotion over what you can't control," recommend the wealth managers at Los Angeles-based RVW Investing LLC, adding: "Always view equity investing as a long turbulent plane ride to a glorious destination – with safe arrival assured."

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After last month's dramatic market swings, the RVW Investment Team is counseling clients to remain calm and focus on basic wealth-building principles.

"With the day to day drama in the financial markets, many are naturally wondering how this might impact their wealth both in the near and longer term," says Jonathan Gerber, a CPA and RVW Managing Partner. "While at this time we do not see a need for client portfolio adjustments, there's never been a better moment to review the core of the RVW investment philosophy that has been so successful over the past decade."

Gerber notes that successful investing requires – even more than a savvy strategy – a clear understanding of three foundational market realities:  

• There is no free lunch. The reason we expect higher long-term returns on stocks than on cash and bonds is because equities intrinsically possess greater volatility. And, since there is no free lunch in the financial markets, times like these demand that we accept this volatility as the "price" of earning those expected higher long-term returns.
• Market timing does not work. If one could consistently time the market, the rewards would be great. But because this "strategy" is extremely difficult to pull off, most investors typically end up with sub-par performance. And despite the consistent failure of this approach, most financial media advice is focused on immediate tactical decisions (i.e. market timing). Fortunately, one does not need gurus, magic or prophecy to invest with success: higher returns are the result of disciplined investing through good times and bad.
• Look at history. Since 1900, there have been 35 declines of 10% or more in the S&P 500. Of those 35 "corrections," the index fully recovered its value after an average of about 10 months.

"Time and again, equity markets have proven to be 'compressed pogo sticks'," says Michael Stone CPA, head of RVW's Portfolio Design. "The stored energy inside the stick is always waiting to bounce back."

"And that is precisely why we offer customized client portfolios featuring diversification among quality equities in a dynamic Darwinian best-of-breed model, an approach that has always provided long-term growth in both dividend income and portfolio value."

The RVW Investment Team is composed of members who are each both CPA and Certified Financial Planners. 

For an expanded RVW analysis of current market uncertainty – including "the ten charts you must see now," please email your confidential request to [email protected]

More information at: www.RVWinvesting.com

CONTACT:  Jonathan Gerber/RVW Investing: 310-945-4000 or [email protected]

SOURCE RVW Investing LLC