Archived Newsletters
Friday, February 3rd, 2012
Now that we are into the New Year, things have been swiftly moving along. The markets had a positive month in January, with the S & P 500 gaining almost 4 1/2 points and the Dow Jones Industrial Average rising 3.4%, according to the Wall St. Journal. That is the biggest January gain since 1997. Who would have anticipated that?
Certainly we don’t have a lack of predictions this time of year. Many ‘experts’ out there are clamoring to tell you what they think will be the final tally by year end. What will the markets do? What will unemployment be? What about the housing market and inflation/deflation? What stocks and mutual funds will finish the year with the best return? Which stocks or mutual funds will be on the worst performers list?
If we look at past predictions, there is no clear view of the future. No one can consistently predict with accuracy what the future holds. Some analysts and money managers earn the top returns for a few years before falling way back into the pack. The ones that are first in return in one year, or one time period, more often than not show up way down the list later. Our Separating Myths workshop delves into these actual numbers.
Looking to experts does have its attraction, doesn’t it? If we just find the most successful mutual fund manager or broker, we will be set. But since no one really knows what will happen in the future, it is anybody’s guess! Your guess is as good as Joe Broker from Lively Stock Brokerage Firm. Read this article about Wall Street picks!
In the last few years we have seen popularity grow in ‘celebrity’ financial gurus. They too may not be the best source of advice for you. It is in their best interest to keep you off balance so you will think you need their ‘unique’ information! A very interesting read here on one such celebrity.
What, then, do we do? Educate yourself. Find out how the markets really work. Find out what your costs really are. Learn the difference between active management and structured investing. Learn what your own investment philosophy is. Education and self-knowledge is the key.
You can begin by ordering our small book, The 7 Biggest Mistakes Investors Make and the 7 Habits of Highly Successful Investors, or call us for additional information we can share with you.
You can also take advantage of our workshops below in the events section.
Lastly, do you ever wonder if your portfolio will last with your retirement withdrawals? We can help, we have a new program that will show you your desired amount of withdrawals and what that might look like.
Wishing you Financial Wellbeing,
Kasey J. Claytor
Aaron M. Wade
Osprey Money Management LLC
Registered Investment Advisory Firm
Posted in Newsletters
Wednesday, December 14th, 2011
Dear Friends and Clients,
Once again, we are entering that magical time we call the holidays. Given the times, this may cause even more stress when we try to give all that we want to give but may not be able to afford to do so. Remember the things of real value aren’t ‘things’ at all and the best gifts in the world don’t have a price—gifts of intimacy and connection, creating a wealth of memories, listening, devoting time, and just being there for those you care about.
It’s been a wild roller coaster ride in the markets this year. Next year will, hopefully, provide some consolidations and solutions that create more stability. The S&P 500 gained +4.3% (total return) on 11/30/11. It gained +4.3% (total return) over the 43 trading days prior to 11/30/11!! This illustrates the importance of always being invested. Just missing one day in the market may be calamitous to your return in the markets.
We make sure each investor is broadly invested at all times.
I recently read some interesting articles and I wanted to share a couple with you. One describes Wall Street’s Three Big Lies.
The other one is fascinating: Steve Jobs’ opinion on Why Big Companies Die. I happen to agree with him that a company losing the emphasis on innovation and passionate creativity and service, and placing focus instead on sales and cost savings, is a prescription for self-destruction.
We at Osprey Money Management wish everyone a wonderful holiday and terrific year next year. To our clients, we extend a very heartfelt thank you for your continued relationship with us. You and your financial health are our purpose, cause and passion.
One more thing, let’s support our local businesses when giving during this holiday season. Buying local products, gift certificates for local services, and locally-made crafts helps us all!
Posted in Newsletters
Tuesday, November 1st, 2011
To all my Clients,
As I write this, the Dow Jones is up over 12,100. After the news from Europe turned out be not as dire as many thought (is it ever?), markets rebounded. Let’s look at what you did right during this time:
1. You re-balanced: Thanks to re-balancing that was completed at the start of the quarter, you were able to take advantage of this recent movement. Money moved from fixed income into equities, allowing us to buy low and maximize the benefit of volatility.
2. You didn’t try to time things: You didn’t worry about what the right day to pull the trigger. You understood that markets move in a non-linear fashion. Over time, free markets have given us a great quality of life. While living through bad news is difficult, history has shown us time and again that it’s never permanent.
3. You didn’t obsess on short term results: Farmers don’t dig up seeds after they plant them, and you don’t obsess over how your portfolio compares to another over a short period of time. You understand that a well-diversified, structured portfolio that eschews the evils of stock picking and market timing is your best weapon for achieving financial success.
4. You let me coach you. I’ve learned over the years that not all investors are coachable. Just like some athletes, I presume. When an investor is not coachable, I bring little value. Hence, I sever those relationships. I know that human emotions are a far greater obstacle to success than almost any portfolio. We are wired to avoid pain at all costs, even if some pain is necessary to achieve our long term objectives. As humans, we would love to get returns in a steady and linear fashion. Not possible. Life is not linear. My job is to remind you of this and keep you focused on the long term likelihood.
5. You understood what long term means. Someone retiring today at age 65 has a strong chance of a 20 year retirement. If prices increase 4% per year, they will more than double during that time. Everyone needs to be a long term investor.
As your coach, please accept my gratitude. I am fortunate to have such an incredible group of clients.
Posted in Newsletters
« Previous Entries
