March 2009 « Osprey Money Management LLC

March 2009

We have news, new links, and a new look. Very soon when you log on to Osprey Money Management LLC, you will arrive at a brand new site with more information, links, and a blog.

We are also preparing a video to embed in our newsletters going forward that will cover current topics. There sure isn’t any shortage of topics! This is a time for us all to stay in touch, and support each other in our commitment to our best possible financial future. At the end of this newsletter you will find information on a book coming out that I highly recommend.

There is a lot of positive, important material out there and I’d love to share it with you. For now, here is a terrific article on The Behavior Gap website entitled “A Manual for Scary Markets”.

For those of you who are already with us, please let us know how better we can serve you.We would love to hear from you. And for everyone, we are ready to assist, educate and guide you to your best financial success.

Warmest Regards,
Kasey Claytor

Looking for a Break in the Clouds

We are in the depths of the recession and bear market. Could it get any gloomier? It looks like we are having a crisis of confidence. It feels as though we have been here before (during the lows of previous markets). I’m hearing people say that it is different this time (I know it is), I’m hearing people say they don’t have enough time left before the markets will regain their losses, I’m hearing all manner of prognostications in regards to the government, and I am hearing fear. I’ve heard that before too.

Always, when we are in the middle of dark times, before we can see any light, we freeze; we imagine the worst and many of us lose hope. We feel this time has come to stay-but time doesn’t stop. Things continue moving and changing, and one day we wake up and things begin to shift again. This time, there is a crack in the shell of hopelessness that has been over us. Something brings some optimism. We don’t know what that will be right now, but something always does.

Until then, we must educate ourselves on what is real and what is just emotional interpretation of these turbulent times. Here are a few truths to remember:

1) On average the stock markets go up for two years and down one.
2) The media gives us only a small portion of the information out there. They choose information that makes the most dramatic story, to keep viewers glued to their station or newspaper. (After all, their primary purpose is to make advertising dollars, not to inform you!)
3) The sky is not falling.
4) More millionaires were made during the depression than any other time in the history of our country
5) Investors really lose when they sell in the middle of a bear market, missing the next big move up. After the crisis is over and the markets recover, these same investors go back in at higher costs.
6) Right now opportunities are being created for the bright, innovative and clear-headed visionaries from coast to coast.
7) The recovery will come. Free markets cannot be held down.

What do we do in the meantime? Certainly sitting in the corner imagining one disaster after another, or watching the news for long periods each day, is counter-productive. It affects our health, our mental outlook, our relationships, and can lead to mistakes that may not be correctable.

Because of present stock values there is a good chance returns are likely to be fairly strong over the next 5 years and beyond. If you believe, as I do, that eventually our country and world economies will move beyond the current financial chaos and economic downturn, the next decade could shape up to be a wonderful investing opportunity in the stock market.

As Bill Schultheis, author of The Coffee House Investor recently wrote, “Don’t get caught up in Wall Street’s rhetoric of trying to pinpoint the market bottom. Don’t latch onto the idea that anyone can identify the top stocks and industries that will lead us out of this recession. You are destined to under perform the stock market by a sizable amount over the next ten years if you take that approach. The intelligent way to capture these returns is through a globally diversified portfolio of low-cost index funds.”

As part of our service to you, we handle all rebalancing, and automatically facilitate your contributions to, and withdrawals from, your portfolio to save you time. The time we’ve freed up for you isn’t supposed to be spent worrying! Remember, our approach to investing is based on science, not speculation. We do not make investment decisions with our clients’ or our own money based on our personal beliefs. Our disciplined investment management process is based on decades of objective financial research and removes emotional interference, providing our clients with fewer surprises and a smoother investment journey.

So look around you. See that your life is still moving along, you’re still strong and vital! Spend some time each day picturing how life will be once we’re past this downturn and loving our statements again. Add value to your life by lifting up your friends and family and reassuring them. What ultimately shifts the direction of the economy, our future and the market is all of us collectively.

Warren Buffet said three things today. Many people missed the last comment, because it wasn’t reported as much as the first two. To paraphrase, he said first that he lost a bunch of money in this market, and then, that it will take a while to recover, perhaps until next year, and finally, when we do, brighter days are ahead.

Abacus Founder, Spencer Sherman, Releases New Book

For ages, Americans have stressed about money. But in our current economic situation, we’re all thinking, worrying, and just plain talking about it, more than ever before. We’re questioning how to save, where to spend, and what to do next. To our rescue is Spencer Sherman-the founder and CEO of Abacus Wealth Partners LLC, acclaimed seminar speaker, and named as one of the top wealth advisors in the U.S. by Worth magazine.

In his forthcoming book, THE CURE FOR MONEY MADNESS: Break Your Bad Money Habits, Live without Financial Stress–And Make More Money! (a Random House Hardcover; on sale everywhere February 2009) he offers a comprehensive, step-by-step plan with the power to transform how we earn, spend, save, borrow, give, and live.