Rainer Michael Preiss – Global Markets Commentary
April 2026
Executive Summary
Private clients often underperform their own portfolios due to behavioral biases, structural inefficiencies, and flawed decision-making. The gap between portfolio returns and investor returns is often driven by human behavior rather than markets.
1. Chasing Performance Instead of Process
Investors often allocate capital after strong performance has occurred, leading to buy-high, sell-low outcomes. A disciplined process anchored in asset allocation is critical.
2. Lack of Asset Allocation Framework
Portfolios without structure lead to hidden concentration risks and overlapping exposures. A Total Portfolio Approach ensures clarity and balance.
3. Over-Diversification
Too many holdings dilute returns and increase costs. Focus on high-conviction investments with clear portfolio roles.
4. Ignoring Currency Risk
Currency exposure can dominate returns. It should be actively managed as part of the portfolio.
5. Emotional Decision-Making
Fear and greed drive poor timing decisions, especially during volatility. Discipline is key.
6. Following Narratives and Crowded Trades
Late entry into popular themes increases downside risk. Distinguish long-term trends from short-term hype.
7. Liquidity Mismatch
Investing in illiquid assets while needing short-term liquidity creates stress during downturns.
8. Fee Blindness
High fees reduce long-term compounding. Focus on net returns.
9. Lack of Rebalancing
Portfolios drift over time. Rebalancing enforces discipline and risk control.
10. Confusing Trading with Investing
Frequent trading increases costs and reduces long-term focus. Separate core investments from tactical trades.
Conclusion
Investment success depends more on discipline, structure, and process than market timing.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investors should consider their individual circumstances before any making decisions.
Rainer Michael Preiss, Partner & Portfolio strategist, DAS Family Office, Singapore
