is fighting against all of the recent media noise prompting clients to change their portfolios, Business Insider
's Mamta Badkar writes.
In Vanguard's latest commentary,"The tightrope of client expectations," Vanguard Investment Analyst Colleen Jaconetti
stressed that advisors remind clients that they should focus on their long term goals, despite what the media is saying or how volatile the market is. Sometimes that means sticking with higher risk assets, Jaconetti said:
We believe it is better to select an asset allocation based on each client's required, not desired, return—the return necessary to achieve his or her long-term goals—which is often meaningfully less than the desired return. Basing asset allocation decisions on the desired return, rather than the required return, may result in selecting an asset allocation that is skewed, sometimes quite heavily and unnecessarily, toward higher-risk assets.
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