Here we are at the beginning of a new year.  Does it seem like there is more noise in the press than normal?  Is it noise or is it news? 

We have the government shut-down, trade talks with China, issues at the U.S.-Mexico border, interest rate hikes, Brexit… lots of uncertainty. 

News is factual data that can be interpreted and extrapolated to derive forecasts for potential outcomes. This same news can turn into noise, making it more difficult to determine what is really important to be paying attention to regardless of the medium we use to receive our daily news feeds. 

With the return of a more volatile stock and bond market as a result of the aforementioned news (and accompanying noise), I think an important factor for individuals to consider is being sure we are managing your investment portfolio appropriately for your time horizon, risk tolerance and overall investment objective.

I work in a world of “percentages” and sometimes when you receive your monthly or quarterly statements, you may have an intellectual or emotional reaction based on a dollar-value gain or decline, not necessarily the percentage gain or decline.  The more money you have, the more dollar-value impact a four-to-six-to-ten percent up or down month or quarter can have on your investment statements.

The investment markets do not move in a straight, northeasterly line.  That is why investors who choose to keep money in places other than in cash at the corner bank historically get a larger reward over time.  This reward is referred to as “Risk Premium.”  Investopedia defines Risk Premium as compensation for investors who tolerate the extra risk, compared to that of a risk-free asset. 

The key word here is “tolerate.”  With a portfolio appropriately invested to your tolerance and objective, investors are historically rewarded over time for avoiding sweeping changes to their portfolio in periods of market turbulence. 

So… how much risk and market turbulence are you able to tolerate?  I invite you to complete a new risk tolerance questionnaire to see if perhaps your risk tolerance has changed over the years.

I do anticipate a lot of up, down, and sideways returns over the coming months.  We strive to position portfolios and expectations accordingly. Completing a new Risk Tolerance Questionnaire and a new Cash Flow worksheet could be a good way to kick of 2019.  I can send both to you at your request.

I will continue to be in touch for our normal review meetings.  In the meantime, if there are some updates or other things you would like to discuss, I always welcome a call from you. 

Most Sincerely,

Hello, Friends and Clients. 

Here we are at the beginning of a new year.  Does it seem like there is more noise in the press than normal?  Is it noise or is it news? 

We have the government shut-down, trade talks with China, issues at the U.S.-Mexico border, interest rate hikes, Brexit… lots of uncertainty. 

News is factual data that can be interpreted and extrapolated to derive forecasts for potential outcomes. This same news can turn into noise, making it more difficult to determine what is really important to be paying attention to regardless of the medium we use to receive our daily news feeds. 

With the return of a more volatile stock and bond market as a result of the aforementioned news (and accompanying noise), I think an important factor for individuals to consider is being sure we are managing your investment portfolio appropriately for your time horizon, risk tolerance and overall investment objective.

I work in a world of “percentages” and sometimes when you receive your monthly or quarterly statements, you may have an intellectual or emotional reaction based on a dollar-value gain or decline, not necessarily the percentage gain or decline.  The more money you have, the more dollar-value impact a four-to-six-to-ten percent up or down month or quarter can have on your investment statements. 

The investment markets do not move in a straight, northeasterly line.  That is why investors who choose to keep money in places other than in cash at the corner bank historically get a larger reward over time.  This reward is referred to as “Risk Premium.”  Investopedia defines Risk Premium as compensation for investors who tolerate the extra risk, compared to that of a risk-free asset. 

The key word here is “tolerate.”  With a portfolio appropriately invested to your tolerance and objective, investors are historically rewarded over time for avoiding sweeping changes to their portfolio in periods of market turbulence. 

So… how much risk and market turbulence are you able to tolerate?  I invite you to complete a new risk tolerance questionnaire to see if perhaps your risk tolerance has changed over the years. 

I do anticipate a lot of up, down, and sideways returns over the coming months.  We strive to position portfolios and expectations accordingly. Completing a new Risk Tolerance Questionnaire and a new Cash Flow worksheet could be a good way to kick of 2019.  I can send both to you at your request.

I will continue to be in touch for our normal review meetings.  In the meantime, if there are some updates or other things you would like to discuss, I always welcome a call from you. 

Sincerely,