• Skip to primary navigation
  • Skip to main content
Mullooly Asset Management, Inc

Mullooly Asset Management

Fiduciary Fee-Only Financial Planner | Investment Advisor in Wall, NJ

  • Services
    • Wealth Management
    • Financial Planning
    • Retirement Planning
    • Investment
    • Estate Planning
  • Our Fees
  • About
  • 732-223-9000
  • Schedule A Meeting

Services

  • Wealth Management
  • Financial Planning
  • Retirement Planning
  • Investment
  • Estate Planning

Quick Links

  • About
  • Our Fees
  • Videos
  • Podcasts
  • Blog

Support

  • Contact
  • Client Login
  • Pay Bill Online
  • Form CRS
  • Our Process
Follow us on Facebook
Follow us on Linkedin
Follow us on Twitter
Watch On Youtube

Let’s talk
Michael Batnick's Investing Consistency Quilt Chart

Consistency is Key When Investing

November 19, 2014 by Thomas Mullooly

https://media.blubrry.com/invest/p/content.blubrry.com/invest/Consistency_is_Key_When_Investing_November_2014_Podcast.mp3

Subscribe: RSS

Being consistent is a critical concept we must learn during life. Setting his recent and questionable financial advice aside, Tony Robbins has said that, “It’s not what we do once in a while that shapes our lives. It’s what we do consistently”. This is 100% accurate. Sadly the same cannot be said for his “All Weather portfolio”, but that’s for another time. On this week’s Mullooly Asset Management podcast Tom and Brendan discuss consistency as it relates to investing.

We read an excellent article this week written by Michael Batnick. Michael is the Director of Research for Ritholtz Wealth Management. At the end of the post we’ll link to Michael’s article titled “It’s Investor Behavior, Not Investment Behavior That Matters”, we recommend taking a few mintues to read it.

Michael looked at several “smart beta” strategies for his study. He selected five smart beta ETF’s to represent the factors of dividend achievers, equal weight, buyback achievers, momentum, and low volatility.

Each of these different investing factors has outperformed the S&P 500 from 2007 through today. What has underperformed the S&P 500 by a considerable margin is buying last year’s top performing strategy. For example, 2011 ends and low volatility was the best investing factor. You want to use the best strategy so you hop on board for 2012. Guess what? You underperformed the S&P 500 by 6.7%. Michael made an excellent quilt chart (picture below) to visually represent this.

Michael Batnick's Investing Consistency Quilt Chart
Michael’s quilt chart shows there are different top performers each year, but over time they all outperform the S&P 500: http://theirrelevantinvestor.tumblr.com/post/102977746523/its-investor-behavior-not-investment-behavior-that

What’s the message we can learn from this example? Consistency is key! Finding a strategy to outperform the market every week, month, or year isn’t possible, even if you want it to be. It is possible to implement a strategy that will outperform over time. To quote Michael Batnick:

“The key is to find a strategy that you can live with; something that meshes with your investing DNA. Jumping from strategy to strategy is guaranteed to lead to poor returns.”

Find a method that works for you, don’t deviate from it, and give it time. No matter what “smart beta” factor you choose, if you can commit to consistency you’re likely to see results over time.

Source:

http://theirrelevantinvestor.tumblr.com/post/102977746523/its-investor-behavior-not-investment-behavior-that

Never miss a post...and we deliver!

newsletter mailman

Get our updates delivered right to your inbox. Sign up today!

Success! Now go and check your email to confirm your subscription.

There was an error submitting your subscription. Please try again.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Filed Under: Podcasts, Investor Behavior Tagged With: relative strength, stock market

About Thomas Mullooly

Thomas Mullooly is owner and founder of Mullooly Asset Management, Inc. In 2002 Tom opened Mullooly Asset Management, a fee-only investment advisory firm. As an investment advisor, and not a broker, Tom works strictly for his clients. With the help of point and figure charting, Tom builds a realistic game plan for clients.

1971 State Route 34, Suite 102
Wall Township, NJ 07719

  • 732-223-9000
732-223-9600
  • support@mullooly.net
  • Services
  • About
  • Our Fees
  • Contact
  • Form CRS
  • Videos
  • Podcasts
  • Blog
  • Client Login
  • Pay Bill Online
  • Our Process

The information on this website and blog do not involve the rendering of personalized investment advice. A professional advisor should be consulted before implementing any of the options presented. None of the content contained in this website should be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

© 2022 Mullooly Asset Management Inc. All Rights Reserved.

  • Privacy
  • Disclosures and Legal Disclaimers
  • Privacy
  • Disclosures and Legal Disclaimers

© 2022 Mullooly Asset Management Inc. All Rights Reserved.