What is a primary factor influencing a client's investment strategy?

A primary factor influencing a client's investment strategy is the client's risk tolerance and investment objectives. Understanding the client's individual circumstances is crucial because it directly shapes how they approach their investments. Risk tolerance refers to the degree of variability in investment returns that an investor is willing to withstand, while investment objectives outline what the client aims to achieve through investing, such as saving for retirement, purchasing a home, or funding a child's education.

Factors like the latest market trends, personal preferences of the fiduciary, and advice from friends and family may provide context or additional perspectives, but they should not dictate the core investment strategy. Aligning the investment strategy with the client's own risk tolerance and objectives ensures that the investments are suitable for their unique situation and financial goals, fostering a more disciplined and personalized approach to investing.