Progress is impossible without change, and those who cannot change their minds cannot change anything.
George Bernard Shaw

When the facts change, I change my mind.
John M. Keynes

What would it take for you to change your mind about anything…or even one thing? We all assume some measure of knowledge about the world we live in, but this knowledge is merely a narrow understanding we have created for ourselves to deal with the complexity of our environment and our ignorance of it.

 

And what about your clients? Are they held hostage to your beliefs and strategies concerning their financial well-being? To your understanding of a complex world or the lack thereof? Is their success being measured by standards set by you or by them? Do new facts about the world about make it possible or impossible for you to improve your efforts and thus the results for your clients?                                                                 
Discipline and consistency are important elements of any professional endeavor, but flexibility may rank higher. Being disciplined does not always mean being rigid. Being able to adapt to the flux of economic, social and political changes seems to be worth the effort. Just as important, is our ability to incorporate new information into our processes and client interactions. Think about how understanding investor behavior has changed the way in which we construct portfolios and also the manner in which we communicate with our clients. And what about factors and factor portfolio construction? New information for a new way of thinking. Sure, words and phrases like: “diversification,” “mean reversion,” and “trend line” all have their place in how we conduct ourselves when managing portfolios, but relying on the paradigms of the past to shape the future is dangerous and narrow.         
I challenge you to open your mind to new thinking and embrace the “modern renaissance” going on in today’s financial world. It is truly a “world without end,” and this may be a bit frightening. But it is absolutely in the best interest of your clients to be fluid and flexible in your thinking.

SCI HIGHLIGHTS

SCI Quarterly Rebalance
It’s that time again…

Please consider risk profiles and model mapping along with any cash management needs for your SCI clients as we move toward the SCI Quarterly re-balance.

If a client needs to make a model change or any upcoming cash distribution requirements, please let us know.                                             

Last Week’s Call…

If you missed last Tuesday’s SCI call you missed a great opportunity to learn about some of the ‘behind the scenes’ analysis carried out by SCI and Sortino Investment Analytics.

Jim Kaffen’s analysis of LSIA’s top funds, ranked by AUM, revealed some very interesting data about some of your favorite funds.

One of my favorite Daniel Kahneman quotes is this:                    

“What you see is all there is.”

This quote reminds me of an important mental error we make as advisors when constructing client portfolios. In last week’s call, Jim Kaffen spoke on why some funds make it into our quarterly solution, and also why you should be considering more than just the number of stars beside a fund’s name when making portfolio decisions. He was spot on.

Salt Creek’s methodology is forward looking, trying to identify future performance opportunity.     

Monthly SCI Webinar

A monthly webinar to highlight special topics, answer questions and to provide training on the best practices. Please join me for a laid back and open session on the Salt Creek Investors platform.

OUR NEXT SESSION IS:
Tuesday, August  14th @ 12pm CDT


LaSalle St. Investment Advisors, LLC
940 N. Industrial Dr.
Elmhurst, IL 60126

Copyright © 2017 LaSalle St. Investment Advisors, LLC., All rights reserved.

As you consider the information provided with the Salt Creek Investors Asset Allocation Platform (the “Program”), please review the following:

The information and descriptions provided about the Program are for educational and information purposes only and should not be used or construed as investment advice, an offer to sell, a solicitation of an offer to buy, a recommendation for any security, or suggest any course of action. LaSalle St. Investment Advisers (“LSIA”) does not guarantee that the information or descriptions supplied about the Program are complete or timely. LSIA makes no warranty with regard to any results obtained from the Program or its deployment. LSIA is not responsible for any direct or incidental loss incurred by relying on information provided about the Program. The allocations presented herein are illustrations and completely hypothetical. None reflect actual investments or investment results and do not reflect allocation of any individual portfolio. Asset allocation and its results vary over time. Other allocations or asset investment categories not offered in the Program may have characteristics similar or superior to those illustrated. Past performance of any model or allocation is no prediction of future results. Neither the Program nor any system/model can predict the future of any market or price movement in a market. Diversification and asset allocation do not guarantee against the risk of investment loss, including risk of loss of principal. Information provided regarding the Program is as of the date of publication and may change at any time without notice. Information has been included which was obtained from third parties and is believed to be reliable and complete. LSIA does not warrant the accuracy or completeness of such information. LSIA is a registered investment advisor and does not provide tax, accounting or legal advice ‒ the information and/or descriptions provided do not constitute such advice. More information regarding LSIA and its investment strategies can be found in the LSIA brochure, ADV Part II, which is available online or through LSIA. Asset allocation may not be suitable for all investors. Before deciding to invest, potential participants should consult with an investment adviser to determine an appropriate investment strategy and methodology which meets the investor’s specific financial needs, objectives, goals, time horizons and risk tolerance. The information and description provided herein has been made without consideration of any investor’s particular suitability for investing in the Program. Asset allocation also involves investment in various asset classes which are not insured by the government. Investing in fixed income and/or high yield securities involves additional concerns including interest rate risk, credit risk and reinvestment rate risk. Investing in securities outside the United States may entail greater risk than investing in domestic U. S. markets. These risks typically include political and economic uncertainty of foreign countries as well as currency exchange fluctuations, including foreign currency exchange rates, political risks, different methods of accounting, financial reporting and foreign taxes. The prospectus accompanying a security should carefully be reviewed before investing. The services described herein are available to persons residing in any state where they would otherwise be contrary to local law or regulation.