Summer Road Trips: Microcosm of Our Financial Lives

Wp_Site_Admin Portfolio Management

Summer road trips have been a tradition for families across the country for many generations. They have changed over time with updated technology (i.e. cars, GPS, lodging, etc.), but the basic concepts of seeing something new while also possibly visiting distant family remain the same. To make this once a year event successful requires extensive planning. Having recently returned from our own summer road trip to the west coast to visit family, I can attest that much goes into the plan!

How Not to Be Wrong and Helicopter Money

Wp_Site_Admin Financial Planning, Portfolio Management

Hopefully, everyone has been enjoying their summer. Here in Wisconsin, similar to the recent stock market increase in July, our temperatures have recently hit the high mark for the year-to-date. However, the path for both the temperature and investments has not been on a linear path. This newsletter addresses how these non-linear paths are important to be aware of. We see them in reviewing first half investment returns, in predicting future investment returns, and in reviewing future economic scenarios. Being aware of this concept can improve the investor experience and hopefully lessen anxiety along the way.

Predictions and Investor Psychology

Wp_Site_Admin Portfolio Management

“We really can’t forecast all that well, and yet we pretend that we can, but really can’t.” -Alan Greenspan “In order to be successful, an investor has to understand not just finance, accounting, and economics, but also psychology” – Howard Marks, Co-Chairman Oaktree Capital Predictions and Investor Psychology As we put together our 2016 outlook newsletter, a few themes continue to rise to the top and the question of which topic to write about became an easy answer: investor psychology and market predictions. When viewed together, you can see how easy it is for an investor to get caught up …

Tis The Season for Lists

Wp_Site_Admin Financial Planning, Portfolio Management, Tax Planning

‘Tis the season to review lists that we made either at the beginning of the year or at the beginning of the holiday season (and maybe even check them twice if you are like Santa). Lists are a great tool for many things. They give us a goal. They keep us focused. They give us feedback. Financial planners like goals, focus, and feedback. Financial planners love lists! Perhaps a list’s biggest benefit is the reference point it provides when your plan is under “attack”. We all can relate to walking into the store (or clicking for those internet shoppers) and …

Season of Change

Wp_Site_Admin Portfolio Management

It has been told that Mark Twain was a terrible investor and the reason being that he ended up gaining knowledge through his own poor decisions and experiences. The above quote could be attributed to another hard lesson learned in that to speculate in the short-term is a fool’s errand. As you know, we do not believe it is profitable in the long-term to speculate on the short-term. With that said, we were not shocked or overtaken with emotion when the stock market recently became much more volatile the last few months. When we look at investment portfolios, we will …

Stay Calm and Carry On

Wp_Site_Admin Portfolio Management

Benjamin Graham, called the father of fundamental investing, said “in the short run the market is a voting machine; in the long run, it is a weighing machine.” A dilemma investors seem to face today is that the ‘short run’ seems to be more like the ‘long run’. We are particularly aware of the emotions of this market and that investors can change their ‘vote’ about the future very often. But we hold firmly to Mr. Graham’s belief that the ‘long run’ makes more sense and that the fundamentals will eventually be ‘weighed’ by the market. Stay calm and carry …

Our Perspective On Recent Market Volatility

Wp_Site_Admin Portfolio Management

In this stock market turmoil, we want to assure you that Your Anxiety Removal Team® is here for you. We are monitoring events and the markets and pledge to keep you informed. We have been through these volatile storms in the past and will survive again. As your financial advisor, we care deeply about your financial well-being, and it is in times like these that it is important to stay calm and refrain from making decisions that may be detrimental to your wealth. What is going on? Global financial markets endured their worst week of the year this past week …