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Most advisers gather appropriate information on potential investment options, weigh the pros and cons of each, study the underlying methodology in order to gain understanding, and then make the rational or optimal decision for their clients…right? WRONG.

The Status Quo – or doing what’s normal – is a force to be reckoned with.  It’s normal and normal has the appeal of comfort on it’s side. Normal requires no effort to learn something new,  no time out of the comfort-zone.

Many advisers operate the way they do because it’s what they’ve always done.  Frankly, this mentality is a risk to investors, mainly in the form of opportunity costs.  Comfort does note equal optimal.  Doing what you’ve done for 20 years may be fine, but is it what’s best for clients?   Shouldn’t it be an adviser’s duty to answer that question with research and effort and to operate with their client’s best interest in mind – shouldn’t that be the mentality?

Doing something other than what’s “normal” creates anxiety and feelings of unease.  These emotions must be combated with reason and logic.  An adviser’s job should never end.  It should be filled with intentional discomfort.  Learning, studying, scanning for opportunity and ways to educate their client base, striving for daily improvement by spending time out side of their comfort zone.

I know you’ve used A-Share American funds for the last 30 years…I’m just saying it might be worth exploring other options.  Your clients will thank you.

“All progress takes place outside the comfort zone.” — Michael John Bobak