The Value of Staying the Course: Discipline and Diversification in Wealth Management
According to market analysis, every 5–6 years or so, the markets stumble¹. And each time we hear: “This time is different.” It’s human nature to feel uneasy when the headlines are loud. But time has a way of showing us that recoveries often follow when we least expect them.
Having nerves is not unusual. In fact, it can be a sign you’re on the right track. The key is standing your ground and not allowing emotions to get in the way, because some of the best days in the markets often follow the worst. At The Kelly Group, our financial planning strategies—the same ones we use for ourselves—are built to help our clients stay steady, stay diversified, and stay focused.
¹Fidelity Investments, “Bear market basics: Looking at history can hep you become “bear aware.” April 15, 2025.
How We Respond in Downturns Makes All the Difference
Investing comes with ups and downs, and it’s tempting to make changes when things get bumpy. This temptation causes people to make poor decisions when it comes to their portfolio: selling during downturns or chasing performance during market highs. But time and again, data shows that trying to time the market rarely works. In fact, if you had missed just 10 of the best performing days in the market from 2000-2019, your overall returns would’ve been cut in half.
This is where discipline makes all the difference. Sticking to a long-term plan even when the short-term outlook seems uncertain is one of the most valuable habits an investor can develop. At The Kelly Group, we help our clients build investment plans grounded in the principle of diversification and designed to withstand uncertainty.
Lessons from Bryan Kelly’s Family Farm: Why Diversification Still Works
Our Co-Founder and Managing Partner, Bryan Kelly, CFP® grew up on a family farm in Harford County where lessons in resilience came with each season. Back then, diversification wasn’t a strategy, it was just how the farm made it through the tough years. When one part of the farm underperformed—like tomatoes during a bad season—another, such as beef or corn, might thrive. The resilience created during this time ultimately allowed his family farm to remain stable and successful all throughout the year.
This principle of resilience shines through in our investment approach even today. The same way a wise farmer would not rely on a single crop, no portfolio should depend on a single asset. A well-diversified portfolio spreads risk across a wide range of investments across sectors and regions. When one area underperforms, another may outperform, helping smooth volatility and supporting long-term growth that secures your financial future.
Know Your Risk to Build a More Resilient Financial Plan
Everyone’s relationship with risk is different, which is why we start looking at three key elements when building your plan:
Risk Required: The level of risk needed to meet your financial goals, based on time horizon and return targets.
Risk Tolerance: Your emotional comfort with risk- how much market fluctuation you can handle without making impulsive decisions.
Risk Capacity: Your ability to absorb losses financially, based on your overall financial position.
By evaluating all three, our financial advisors design a plan and recommends a portfolio that considers your risk appetite and aims for growth and is built to hold up during volatility. It’s not about avoiding risk altogether; it’s about managing it intentionally.
A Financial Advisor Can Help You Stay Grounded in What Matters Most
We help our clients focus on what truly matters: their goals, values, and financial well-being. Just like Bryan’s family farm thrived through planning and resilience, a steady, diversified wealth management approach can lead to lasting financial success and peace of mind for your future.
Let us help you stay the right course. Contact us today to learn how our team of financial advisors and wealth managers can support your journey.
In addition, view our free webinar to learn more about our essential investment principles: https://attendee.gotowebinar.com/recording/7809370817340055565
The Kelly Group recorded this presentation on January 24, 2022. The views discussed in this presentation are as of the recording date and are subject to change at any time based on market or other conditions. These views are not intended to be a forecast of future events or a guarantee of future results.
The Kelly Group is a trade name of Kelly Financial Group, LLC, a registered investment adviser with the Securities and Exchange Commission ("SEC"). Registration of an investment adviser does not imply any level of skill or training. For more information about our services, please use our Brochure and Relationship Summary, available on the SEC's website at www.adviserinfo.sec.gov, and on The Kelly Group's website at www.kellyria.com.