The KeatsConnelly Investment Philosophy

An appropriate asset allocation and a well-diversified portfolio are fundamental to long-term investment success.

The right mix of bonds, stocks, and cash helps limit your short-term investment risk.  We build portfolios to reflect your overall financial situation while targeting the least possible amount of risk needed to reach your goals.

In public capital markets, profitable short-term opportunities are quickly traded away.

Well-capitalized and informed traders act quickly on new information, so we view the current price of a security as the best unbiased estimate of its true value.  Active trading tends to increase costs, so we believe “passive” investments such as index mutual funds and ETFs offer the best long-term investment experience.

Investors should focus on long-term average performance and not chase short-term trends.

Equity markets move toward long-term average return levels over time, and when you invest can greatly affect realized returns; however, investors who try to time when to get in and out of markets usually harm their long-term returns.  Therefore, an appropriately built and rebalanced portfolio represents the best way to reach long-term investment goals.  Occasional tactical emphases may help boost returns but should be undertaken very carefully.

Small company stocks and “value” stocks offer higher long-term performance both domestically and internationally.

Historically, stocks of smaller companies and stocks whose prices reflect deep discounting by the market have provided premium returns over long periods of time.  We attempt to emphasize these types of assets within an overall portfolio context.

Fixed income investments should reduce a portfolio’s volatility, so it is important to emphasize safety through high credit quality and shorter-term maturities.

The allocation to fixed income (bonds and cash) represents a key risk management tool.  While long-term and low-quality bonds can increase current yields, they can also carry significant volatility.  For this reason, we generally target safety first, and yield second when building the fixed income portfolio.

Costs detract from returns, so investors should look to limit fund and trading expenses.

Abundant research indicates that funds with lower costs often have superior relative performance.  Infrequent trading can also help keep costs down and boost returns.

Cross-Border Series
The Border Guide
Now available in its 11th edition, The Border Guide has sold over 80,000 copies and is considered the definitive cross-border financial tool for Canadians living, working and investing in the United States.
Buying Real Estate in the US
This thorough financial, tax, and legal guide will help snowbirds understand the process, and make informed investments south of the border.
A Canadian's Best Tax Haven
This book will show you how to realize your dream of living a lifestyle in a climate that allows for year-round golfing and sandy beaches while lowering your taxes and cost of living.
Taxation of Canadians in America
This book addresses individual US taxation and estate planning issues you will face as a Canadian living in the US.
Taxation of Americans in Canada
US citizens and green card holders are subject to US tax regardless of where they reside in the world. Are YOU at risk?
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