Fear of missing out (“FOMO”) • Annual Disclosures

Monthly AIRE Perspectives – May 2021


Dear Friends and Valued Clients,

During times like these, when markets have reached record highs, when there are a handful of stocks so popular that they actually have an acronym (“FAANG”), and when you will not be able to turn on the television for an hour without hearing the word “crypto,” we felt it would be most important to discuss “FOMO” – the fear of missing out, and to provide a reminder of what really matters in long-term investing success.

“FOMO” – the fear of missing out – is a phenomenon that occurs in many facets of everyday life, but particularly in investing. In investing, it inevitably occurs after certain investments have reached stratospheric levels, and those who don’t own those investments begin to panic that they really need to jump in. Most often (but not always), as with the technology bubble of 2000, this happens the most at or near the highs of the market.

Please keep in mind: this is not a prediction on the future direction of cryptos or of the stock market. It is literally impossible to predict the future, and we are not at all bearish on the future of cryptocurrency or blockchain technology. Rather, we want to use this as a reminder of what matters the most when it comes to investing: your goals, your time horizon for the different portions of your portfolio, your risk tolerance, and the principles of successful long-term investing, which include asset allocation, diversification, staying the course and rebalancing.

You do not need to capture every single top performing investment – or even any single top-performing investment in a given year – to achieve your goals. The best-performing investments in the world at any point in time – the ones that create the most “fear of missing out” – are usually the riskiest. This does not mean that you should never invest in such risky investments. It just means that those who were fortunate enough to have captured such returns have also likely taken huge losses on other such risky investments in the past, so proceed with that in mind. For those who have already achieved a level of financial success and are on track to reach their goals, we believe that it is important to keep this perspective when thinking about how much to invest in riskier categories you may be missing out on. But don’t do it just because of the fear of missing out!

We want to share an excellent recent article from Forbes with you that highlights FOMO quite well – this is a short, but worthwhile read: Investors, Don’t Succumb To The Fear of Missing Out.


What we have been working on

For the past several months, we have continued on our focus to finding investments to complement our existing stock and bond portfolios. Our research process has been quite grueling, as we have met with dozens of companies, considered numerous asset classes and compared hundreds of potential investments. The process has been comprehensive and has taken longer than anticipated, but we felt it was more important to conclude our research thoroughly rather than to rush to any decisions. Having said this, we are almost done with our due diligence and will be in touch with each of you very soon.


Annual Delivery of Our Firm’s Disclosure Documents

Investment advisers are required to file and provide clients with updated copies of their disclosure documents on an annual basis. Please click here for a copy of our updated Firm Brochure and Brochure Supplement(s), which contain important information about the practices of our firm. In addition, you can click on the same link above for an updated Form CRS and a marked up version of our Form CRS that demonstrates the changes that we have made since the previous version. We have also included our firm’s current Privacy Policy, which describes how we safeguard your personal information. All of these disclosures can also be found at any time on our website, www.aireadvisors.com by clicking on “Disclosures” at the bottom of any page, or by clicking here.

If there are any changes in your financial situation or investment objectives, please contact us at your earliest convenience to schedule a time to discuss this further. We would like to take this opportunity to thank you for your trust and look forward to many more years together.


AIRE Advisors Welcomes Balfoure Brenes!

AIRE Advisors is pleased to welcome Balfoure Brenes to our team in the role of VP - Wealth Advisor!

Balfoure joins AIRE Advisors with three decades of experience in the financial services field. Prior to joining AIRE, he was a Senior Financial Advisor at Merrill Lynch in Beverly Hills. He offers advice and guidance to successful entrepreneurs, families and individuals seeking strategies to solve complex wealth management challenges.

Balfoure is a firm believer in giving back to the community. He has served on the board of directors for the Center of the Arts in Eagle Rock and worked regularly for organizations like the American Heart Association, the University of Southern California, and Junior Achievement, where he taught 3rd and 12th graders about financial literacy.

Recently, he and his wife, Anh, adopted their little boy, Oliver, and fostered Lily, a little girl, who bring much joy to their lives. With his rich, diverse perspective, Balfoure brings cultural sensitivity and understanding to Latino and Asian American families and businesses.

Balfoure earned his undergraduate degree in finance from the College of Business and Economics at Cal State University – Northridge. He also holds a Chartered Retirement Planning CounselorSM (CRPC®) designation.

 

Once again, we would like to thank you for your trust and loyalty, and look forward to speaking with you in the upcoming month. 


The commentary and opinions expressed in our articles on this page reflects the personal opinions, viewpoints and analyses of the AIRE Advisors, LLC employees writing the article. The articles on our website should not be regarded as a description of advisory services provided by our firm or performance returns of any AIRE Advisors, LLC’s clients. Any past performance discussed in these articles is no guarantee of future results. The views reflected in the articles are general in nature and made to provide education about the financial industry. These views and opinions are subject to change without notice. Any mention of a particular security, sector, and related performance data is not a recommendation to buy or sell that security or in that sector. Our firm manages client accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the articles. To determine what kind of investments may be appropriate for you, please consult your financial advisor prior to investing. Also, please note that all investing involves risk and the possible loss of principal capital.

In addition, AIRE Advisors, LLC may provide links hyperlinks for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Our firm is not responsible for errors or omissions in the material on third party websites and does not necessarily approve of or endorse the information provided. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites.


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