This Week’s Blog Is Written By Scott D. Heins, CFP®, IAG Chief Investment Officer
September 24, 2025

It began very ominously. No wins in March. Poor pitching. Minimal hitting. Swept out of Yankee Stadium like dirt in the dustpan.

Our blog on April 2 even asked you to reflect on what kind of fan you are to gird yourself for what appeared to be a season of struggles (both on the baseball diamond and in the financial markets).

And now that it is September we know the results. March performance does not predict future performance. The Milwaukee Brewers are the National League Central Division champions for the third consecutive year and currently own the best record in all of Major League Baseball.

How did they turn their season around? Did they acquire a big-name player to boost their talent pool? No, they picked up cast-offs from other teams that became immediate contributors or pulled up players from the minor leagues. The Brewers’ total payroll for this season ranks 23rd out of 30 teams in the league.

Maybe their strength is not having a team of highly paid all-stars, but a complementary mix of consistent players that minimize mistakes.

The challenge with adding all-stars to a small market team is their price tag is entirely based on past performance which may or may not be sustainable as players age. All it takes is for one highly paid player to get injured, and your low budget team is financially crippled as you handsomely pay a player that is not on the field.

Diversification amongst affordable talent can lead to less injury risk and more consistent results on the field. If every player pulls their weight equally, a team can better survive injuries, individual hitting slumps, and the occasional bad start by a pitcher.

Diversification can also apply to the financial markets where the all-star performers capture traders’ attention after recent outperformance. But allocating your entire portfolio to asset classes that have recently shown significant outperformance does have its risks. What if past performance does not indicate future performance?

Instead, we advocate for fielding a complete team designed to help you fulfill your financial plan. Sometimes that means trading for a player that has recently underperformed and been demoted to the minor leagues (like Andrew Vaughn). Or rebalancing your portfolio during a stock market tumble to maintain your target allocation (like in April this year).

Congratulations to both the Brewers and long-term investors on a surprisingly successful year so far. Thankfully, performance in March and April were not predictive of future results.

Quote of the week: Arthur Ziekel: “Personal portfolio management is not a competitive sport. It is, instead, an important individualized effort to achieve some predetermined financial goal balancing one’s risk-tolerance level with the desire to enhance capital wealth. Good investment management practices are complex and time consuming, requiring discipline, patience, and consistency of application.”

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.

Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.​

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.

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.

Photo Credit: iStock 458735541

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