I frequently talk to prospects and admittedly to some clients who believe their financial advisor should be able to not only avoid market declines but also predict the future direction of markets. While this expectation is an understandable by-product of billions spent by Wall Street to perpetuate this myth
and justify high fees for mutual fund managers - it is simply not based in reality.
The truth: No advisor has a crystal ball
. Your return as an investor will primarily be driven by the asset classes you and your advisor agree that you should own. The "secret sauce
" to reaching your goals is really no secret at all: it's to choose a mixture of asset classes which is most likely to meet your needs and to not deviate from that course based on speculation on what "could" happen in the future or what has already happened.