Investment Philosophy

The three Ds of the Trade Prime Station Investment Management, LLC investment philosophy

Because the financial markets and our lives are dynamic in nature, Trade Prime Station Investment Management believes in using a disciplined approach through a diversified portfolio based on timeframe and ability to tolerate volatility in the market.

Dynamicsarrows pointing up and down

  • Start investing early
  • Define your time horizon and prioritize your goals
  • Quantify your assets and determine what is available to support your goals
  • Measure your risk tolerance against your timeframe

Diversificationpie chart

  • Divide your investments among equities, fixed income, and cash
  • Diversify across and within asset classes
  • Avoid concentrated exposure which may elevate your risk
  • Consider client-focused solutions or wealth management for specific financial needs

Disciplinehead

  • Take a long-term approach
  • Base investment decisions on process rather than emotion
  • Consider costs and tax consequences
  • Review and rebalance regularly

How the three Ds of investing apply to Trade Prime Station Investment Management's managed portfolios

Asset Class Winners and Losers

Many investors believe if they just pick the right investment that is enough. However, changes in the market means investors may benefit over time from having a strategic mix of investments which are matched to their tolerance for market fluctuations. This strategy is designed to help keep investors from experiencing the more extreme market losses.

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heat map chart showing asset class winners and losers

Asset Class Winners and Losers

Many investors believe if they just pick the right investment that is enough. However, changes in the market means investors may benefit over time from having a strategic mix of investments which are matched to their tolerance for market fluctuations. This strategy is designed to help keep investors from experiencing the more extreme market losses.

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chart showing diversified portfolios in various marketing conditions

Diversified Portfolios In Various Marketing Conditions

The potential benefits of diversification are most evident during bear markets. This chart illustrates the growth of stocks, bonds, and a diversified portfolio during two of the worst performance periods in recent history.

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GDP Growth by Region

We believe in the diversification benefits of international investing. Gross Domestic Product (GDP) measures the products and services of countries around the world. As we look at opportunities for investment, we want to identify areas that may contribute to growth moving forward. GDP is one component that is used to help identify those areas.

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chart showing GDP growth by world region

GDP Growth by Region

We believe in the diversification benefits of international investing. Gross Domestic Product (GDP) measures the products and services of countries around the world. As we look at opportunities for investment, we want to identify areas that may contribute to growth moving forward. GDP is one component that is used to help identify those areas.

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chart showing trends in global investing

Global Investing

Global diversification means including a variety of both U.S. and international investments in stocks and bonds. Since international markets do not always move parallel to U.S. markets, international securities can help diversify a domestic portfolio.

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Growth Through Global Investing

Different economies are strong at different times. Diversification represents an opportunity to include growth from other economies in a portfolio.

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chart showing annual returns of developed global stock markets

Growth Through Global Investing

Different economies are strong at different times. Diversification represents an opportunity to include growth from other economies in a portfolio.

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chart showing simulated portfolio values with high withdrawal rates

High Withdrawal Rates

Different withdrawal rates may impact how long your investments last. Early withdrawals impact the principal as well as potential earnings on that investment. This is why it is important to have a plan in place to ensure that your withdrawal rates are appropriate for your situation.

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Managing Risk with Portfolio Rebalancing

Rebalancing is part of the discipline of investing. Rebalancing involves taking profits from investments that have done well and reinvesting them in the portfolio across other investments that may not have performed as well. This discipline is important for investors to help them avoid taking additional risk which may make it more difficult for them to stay invested in challenging markets.

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chart showing the risk and return of rebalanced versus non-rebalanced portfolios

Managing Risk with Portfolio Rebalancing

Rebalancing is part of the discipline of investing. Rebalancing involves taking profits from investments that have done well and reinvesting them in the portfolio across other investments that may not have performed as well. This discipline is important for investors to help them avoid taking additional risk which may make it more difficult for them to stay invested in challenging markets.

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chart showing market downturns and recoveries

Market Downturns and Recoveries

Market downturns and recoveries are a normal part of investing in both stock and bond markets. While most investors primarily think of stock market downturns, it is important to have a disciplined plan in place to help investors navigate changes in market conditions.

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Portfolio Summary Statistics

Asset allocation and length of holding period have an impact on the risk and return of a portfolio. Understanding your risk level, keeping a long term perspective and staying the course through downturns may help improve the likelihood of reaching your goals as an investor.

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chart showing portoflio summary statistics

Portfolio Summary Statistics

Asset allocation and length of holding period have an impact on the risk and return of a portfolio. Understanding your risk level, keeping a long term perspective and staying the course through downturns may help improve the likelihood of reaching your goals as an investor.

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chart showing the probability of living to various ages

Bond Market Performance

While many people think of the potential benefits of diversification as it applies to stocks, fixed income diversification can also be a potentially important part of managing risk in fixed income investments as well.

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Risk of Stock Market Loss Over Time

Short term volatility can often distract investors from focusing on their long term investment needs. Keeping a long term perspective means having a process that is disciplined enough to account for these different market environments.

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chart showing risk of market loss over time

Risk of Stock Market Loss Over Time

Short term volatility can often distract investors from focusing on their long term investment needs. Keeping a long term perspective means having a process that is disciplined enough to account for these different market environments.

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chart showing the risk versus return of stocks and bonds

Stocks and Bonds Risk Versus Return

Having a mixture of stocks and bonds is one aspect of diversification. As an investor, it is important to try optimizing the trade-off between risk and reward. Making sure you have an appropriate mix of stocks and bonds can help with the process of examining this trade-off.

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The Cost of Market Timing

Investors who attempt to time the market run the risk of missing periods of higher returns, potentially leading to adverse effects on the value of a portfolio.

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chart showing risks of missing the best days in the market

The Cost of Market Timing

Investors who attempt to time the market run the risk of missing periods of higher returns, potentially leading to adverse effects on the value of a portfolio.

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chart showing ending wealth values after a market decline

The Importance of Staying Invested

A disciplined process helps investors stay the course throughout difficult market conditions. Conversely, investors who attempt to time the market run the risk of missing periods of higher returns, potentially leading to adverse effects on the value of a portfolio.

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U.S. Market Recovery After Financial Crises – Balanced Portfolio

Diversification is designed to help investors avoid the deeper declines individual pieces of the portfolio may experience. In recoveries, this may help the portfolio to be more resilient which is why diversification is a key component in helping investors navigate the dynamic nature of the market.

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chart showing U.S. market recovery after financial crises

U.S. Market Recovery After Financial Crises – Balanced Portfolio

Diversification is designed to help investors avoid the deeper declines individual pieces of the portfolio may experience. In recoveries, this may help the portfolio to be more resilient which is why diversification is a key component in helping investors navigate the dynamic nature of the market.

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Managed portfolio solutions

Essential Portfoliostechnology driven portfolios

An automated, low-cost, low-minimum investment solution with access to five goal-oriented ETF portfolios.

 

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Selective Portfoliostechnology and people driven portfolios

A broader range of goal oriented portfolios made up of mutual funds and ETFs, based on varying investment objectives and risk profiles.

 

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Personalized PortfoliosPeople

The highest level of service, featuring tailored guidance and portfolio construction that takes your overall financial picture into account.

 

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Start the conversation

Talk to your Financial Consultant or mail us at support@tradeprimestation.com to learn more.