What specific behaviors would advisors like to see their clients change for 2026? And how can they help turn a January intention into a repeatable process for years to come?
The practical application of behavioral finance principles within the Guggenheim investment process can serve as a useful model for how these ideas can be adapted to any advisor’s practice.
The same skills that help athletes and teams succeed—resilience, strategic thinking, and the ability to adjust to changing conditions—are also critical in proactively navigating the financial markets.
4 principles for building resilient, risk-managed portfolios
John Grace is the founder and president of Investor’s Advantage Corporation, based in Westlake Village, California. Mr. Grace’s practice has a clear objective: helping clients make long-term financial progress while working to limit losses during difficult markets.
He says he often uses sports analogies to discuss broad investment strategy with clients. He explains it this way:
“Savvy investors and championship sports teams win the same way: They play defense first.
“They know offense gets attention, but risk control keeps you alive when conditions turn ugly. They avoid catastrophic mistakes, adjust strategy when momentum shifts, protect the lead instead of showboating, and understand that one bad turnover can erase a season—or a lifetime of savings.
“Champions don’t rely on miracles. Savvy investors don’t either. Both focus on limiting losses so they’re still standing when the opportunity to win shows up.”
Mr. Grace says his firm follows four key principles when putting this philosophy into practice with clients:
- Define your risk tolerance in percentage terms.
- Build a portfolio to limit losses within your risk appetite.
- Apply active management. Say no to static accounts.
- Add alternative investments for greater diversification.
He adds, “Investor’s Advantage Corporation believes that financial and investment planning should be about risk mitigation, not unnecessary risk creation.”
Spotlight: Behavioral insights for better client outcomes