Offense or Defense

December 16, 2020 - Published by IAG Wealth Partners

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Offense or Defense e1608129323802

If the Green Bay Packers’ defense surrenders 24 points to the Detroit Lions, how many points could the Kansas City Chiefs score against them? With the Packers’ prolific offense, does it really matter?

A defensive-oriented football coach will tell you that defense wins championships. When a defense dominates, the opposing offense has less time on the field, scores fewer points, and puts less pressure on your team to score.

An offensive-minded football coach will tell you that offense wins championships. When an offense dominates, the defense only needs to stop the opposing team a few times before they fall too far behind to catch up.

If your team has both an intimidating defense and a potent offense you have a higher likelihood of winning a championship. If you only have one of them your team is more vulnerable to being defeated in an important game.

The same can be said of your investment portfolio.

Just a few short months ago (from February 19 to March 23) the defensive players on portfolio teams thoroughly dominated. It reached the point where some coaches completely abandoned their offense and sent their offensive players to the locker room to sit in cash.

But then the game changed overnight without any notice, and coaches who gave up on their offense suffered a humbling setback that likely ruined their season.

While a football regular season consists of only 16 games, life’s regular season consists of an unknown number of days, months, and years. This luxury of time takes a lot of pressure off of your investment portfolio to win today. Your season is your lifetime.

Your personal financial plan lays out a path toward your short- and long-term goals over this season. We then assemble both defensive and offensive players into your portfolio that fit your plan and continuously evaluate whether they are playing their position well. We also monitor your team’s balance between defense and offense to ensure you consistently have the right combination of skills for your goals regardless of how the game is going currently.

The Packers have three games remaining in their regular season, and I find myself hoping that offense wins championships this season. At the same time we are certainly keeping an appropriate level of defense in our clients’ portfolios even though the markets are currently favoring a strong offense.


Oh, and GO PACK GO!


Quote of the week: Vince Lombardi: “We didn’t lose the game; we just ran out of time.”

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through IAG Wealth Partners, LLC, (IAG) a registered investment advisor and separate entity from LPL Financial.

Any opinions are those of IAG and not necessarily those of LPL Financial. Expressions of opinion are as of this date and are subject to change without notice. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. No strategy assures success or protects against loss. Investing involves risk including loss of principal.

This Photo by Unknown Author is licensed under CC BY-SA

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