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Stay Focused on the Long Game

The St. Louis Cardinals are one of the most successful baseball franchises in the nation, with eleven World Series Championships to their name and holding the moniker of the winningest team in the National League. In fact, they are second only overall to the New York Yankees in the Major League Baseball Association. They have won 19 National League pennants and 15 division titles. They are also one of the oldest organizations in the league, entering the league as the St. Louis Browns back in 1881.  

The Unexpected Play of the MLB in 2023

If you were not paying attention to the way the MLB league was shaping up in 2023, you might be surprised to learn of several changes. There were likely some wild turns you didn’t exactly expect. Of course, that could be said for every year as each year brings about some unexpected changes. However, this year, the most notable changes might not be in the teams themselves but in some significant rule changes. In essence, the MLB redesigned baseball in 2023, and so far, it’s working. 

To put it most simply, the changes that we all have enjoyed in 2023 come from speeding baseball up. In recent years, the duration of a nine-inning game has stretched the patience of even the most committed St. Louis fan. These changes to the rules that have effectively sped up the game include increasing the size of the bases, time limits between various game elements like pitcher changes and pitches, and also the elimination of the infield shift.  

These changes have effectively reduced the time of play, improved the action, reduced injuries, and more, all of which have been highly supported by the fans. In the same way, unexpected changes in the market can offer opportunities for you as an investor to either quit and head home or instead stay focused on the game. While our beloved St. Louis Cardinals are in the midst of a losing season, there could be a turning point right around the corner. Of course, even if there isn’t, there is always next year to make a new impact on the MLB, keeping with this team’s ability to make history and turn heads. 

 Let’s face it in the game of baseball and stock markets, there is never a guarantee for success no matter the rule changes or the current seasonal standings of your favorite team. That is what makes baseball so exciting! Lesser known stocks and teams that are currently struggling can always make a resurgence. That is why following a favorite baseball team like the St. Louis Cardinals and choosing the right investment strategy can go hand-in-hand.  

Lessons For Investing From The St. Louis Cardinals 2023

There are several similarities between the game of baseball, the season thus far from the St. Louis Cardinals, and our own desire to make the best financial decisions for the rest of this year and into the upcoming year. Therefore, if you are looking for some solid investment tips, and a plan that will ultimately come out on top, look no further than major league baseball and your trusted advisor at Brockmeier Financial. Then, consider the following facts:

Winners Don’t Always Win

As mentioned above, the St. Louis Cardinals are a winning organization. In fact, they have won more than nearly every other MLB organization.  However, they do not always win every game of every season. Therefore, you can take this analogy and apply it to stocks because stocks as well won’t always continue to perform as desired. This is true even if they have done well in the past. The old adage applies here and bears repeating, “Past performance does not guarantee future success.” You should look at your current investment strategies in much the same way. In other words, when considering your account history of investments, there is no single “team” or investment that will win every single year. 

While winners not always winning can be a bit of a buzzkill, you can also look at it in the reverse as well. Just because a stock hasn’t performed well in the past doesn't mean it will always be a bottom dweller. In reality, in both baseball and the stock market, there will always be fluctuations. It’s the nature of the market and the game. Therefore, when choosing to diversify your portfolio, we are happy to help you determine the best mixture of asset classes to ensure that you are well diversified. As much as it might be tempting to, it’s not wise to put all your money into one asset class just because it might have performed well previously or recently. Many situations can cause changes to occur within the market and that same asset class might look and perform very differently in a subsequent year. Therefore, keep in mind, both in terms of baseball teams and stocks, winners don’t always win, but losers don’t always lose either!

Adjust When Needed

As mentioned above, a big change that came out in baseball this year was a change to the rules to speed up the game. This was a necessary change to save the sport as we know and love it. In the same way, you might have to change the way you are investing thanks to changes in the market. If you find that some of your investment strategies are currently not working for whatever reason, you can adjust or rebalance your current mix of stocks at any time. We recommend you check your portfolio at least quarterly to ensure that your investments are meeting both your expectations and your needs. Keep in mind, as things change within the market, you should make changes in your portfolio as well.  

Keep a Balanced Offense and Defense

While this point doesn’t necessarily have anything to do with the rule changes, in baseball, and in virtually all sports, you cannot win the game by having just a good offense or just a good defense. It takes both. In other words, the St. Louis Cardinals will never get back on a winning streak and once again find postseason glory if they don’t address the issues that are happening on both offense and defense. In the same way, you need to have a good mix of both offensive and defensive investments to excel. However, it doesn’t stop there. Not only do you need to have both types but you need to know when to use each within the game or within the market so you can bring your team to victory. 

 When you see a downturn in the market, you want to minimize your losses. This means your assets will play defense to achieve that reduction in loss. Other assets during this time can still play offense to maximize your returns. Essentially in baseball and the stock market, you want a good mixture of both types of assets, meaning you want a healthy amount of diversification. This means you maximize rewards while preparing for potential risks. It’s worth noting that in the same way having a good offense and defense in baseball doesn’t guarantee you a win, it does help mitigate risk and prepare for most situations. 

Focus on the Long Game

The last thing you should do as a St. Louis fan is to give up on the team before the season is out of hand. You don’t want to burn out early. After all, if the team gives up before finishing the season, they will surely experience defeat. While it isn’t always easy to stay focused on trying to win the season, especially when you are down several games, it’s important to keep your head in the game! You never know what might take place and the victories that could come late in the season to create a whole new narrative for the year.  

The market tends to be cyclical, meaning it will come back around even when all hope seems lost. Therefore, if you jump out of the market because things look bad at the moment, you will lose what you could have gained should you have merely stayed the course. Whenever you feel like giving in, and you hear some news that makes you question your investments, try to keep your fortitude and get through the volatility. It is important to remember in baseball and in the stock market, it’s a long season, not a short sprint. 

Don’t Underestimate The Difference a Great Coach Can Make

Planning is important in both baseball and investing. There are many notable coaches that have made their mark on the MLB, such as the longest-tenured on-field coach St. Louis’ own Jose’ Oquendo. Coaches serve roles in pitching, hitting, base running, and fielding not to mention managing the team. This all equates to the on-field success of the players and the team overall. In the same way, we can give you tips for a well-managed investment portfolio. We can also help guide you on all aspects of your financial plan. If you are looking to evaluate your current plan or need to work with us on developing a new one, please reach out, so we can assist! 

Any opinions are those of Brockmeier Financial Services, LLC, and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of the strategy selected.