Stay the Course?

Stay the Course?

Are you a “lane changer”? In traffic, he’s the guy who’s constantly changing lanes, expending a lot of energy but doesn’t really get ahead.

We all know we’re supposed to “buy low and sell high”, but unfortunately your average investor doesn’t do that. When we look at the flows into and out of equity funds we find that people are pouring tons of money in when the markets are high and withdrawing at market bottoms.

Why? By the time people feel comfortable with the direction of the market (investor confidence is increasing), they’re looking at recent past data and many times the “upward movement” has already occurred. A little late. Same deal on market declines.

I happen to believe in active management, but you’ve got to be disciplined and unemotional, and that’s tough to do!

In this week’s video, I expand upon these thoughts and even have some pretty graphs imbedded for you. Watch it please, and don’t be a investment lane changer!!

TRANSCRIPT:

Hi there, Mike Brady with Generosity Wealth Management. And I this week I want to talk about staying the course, OK? About six months ago I did a video about conviction, in which really I asked the question “what do you really believe in?” “What do you really stand for?” What is that line in the stand? And that could be in your own life; that could be in your financial life. It’s really a question that I think could have lots of areas where it’s applicable but right now it’s really about investing.

I’m going to throw a chart up in just a few seconds here, but most people do the wrong thing at the wrong time. And I don’t want you to be that dumb money, I want you to be the smart money. And people always say, “Oh I buy low and sell high.” But frankly most people throw lots of money into funds when it’s at a high, when they feel comfortable, like, “oh, yeah man, the market did so well the last year or two, and I’m going to throw lots of money in…” because they expect it’s going to continue to go up. And they think that the market is actually linear; meaning if it’s gone up, it’s going to continue to go up, or if it’s gone down, it’s going to continue to go down- and that’s just not the case! It goes up, it goes down, it goes sideways! And real people also withdraw money, you know, usually at the bottom. And so this is a good indicator, frankly, when people are taking money out, the contrarian in me, I say, maybe I want to invest in that. That’s a good buying opportunity. Warren Buffet has a famous phrase, “be greedy when others are fearful and fearful when others are greedy.”

And the chart, I’m going to throw it up there right now. You’ll notice, at certain times, I’ve circled them, the market has gone up, that’s the line, and then the bars are the money flows, in and out. And you’ll notice that the bars are the highest when the market is at the highest, which is what you don’t want. And then the, (sorry about that, I just hit my microphone) and then when the market is at a low is when people are taking all their money out- which of course is the exact opposite.

So, have discipline, please. Be the smart money.

I’m happy to help you with that. I talk with my clients all the time and I do these videos and these newsletters to really have good communication, good education, so we can go through this with as little emotion as we can, but of course we’re human. We’re not a bunch of Vulcans running around! But, let’s have our course, we’re at Point A, where are we going to Point B? Let’s go there.

My wife said something the other day at breakfast that I just thought was wonderful, which is, “you know if you’re going down the road, and you’re in traffic, and have you ever noticed that person who’s jumping from one lane to the other, trying to get ahead of everybody else? Well, a lot of time’s they are expending an awful lot of effort and not getting any further.” And it’s so satisfying, frankly, when you’re just sitting there, staying the course, and you just keep passing this guy. Well, I want you to be that person.

So, anyway, 303-747-6455, Mike Brady is my name, I’m the President of Generosity Wealth Management. I serve the Boulder, Denver, Longmont area here in Colorado, but I’m in many different states. Perhaps I’m already registered in your state and have clients in your state, if not, let’s have that conversation. I’m looking to grow my business and I hope to do the best job that I can for you, I really care, I’ll treat you like my family. 303-747-6455. You have a wonderful, wonderful week, thank you, bye bye.

 

 

 

 

 

 

China’s Inverted Curve

China’s Inverted Curve

An inverted yield curve in the US has predicted 6 out of 7 worsening economic conditions in our country since 1970.

In China, we don’t have the same type of statistics because of their young open economy, but recently their yield curve has “inverted”.

I’m watching this and realizing it’s just another of many economic indicators out of China pointing towards a slower economy.

I really don’t want much (if any) exposure to the Chinese Stock Market.

This also has consequences to the whole global trade market as China is the 2nd largest economy right now. We truly are a global economy, and what affects China affects the US.

Stay tuned to my newsletters this year as the China story unfolds.

Click for the Full Article

 

Client?

Client?

Are you interested in talking with me about your finances and investments but not sure if we’re the right fit?

I have clients of all portfolio sizes, ages, employment, and stages of life.

What I like to do is make a difference in someone’s life. Frankly, it’s just as rewarding for me to work with a young couple who are serious about planning and saving for their future as it is to manage portfolios and wealth for business owners and retirees.

Don’t be shy. If you’re curious about whether we’d be a right fit, give me a call and we can talk. It would be a great honor.

The Story Behind Gas Prices

The Story Behind Gas Prices

The price of gasoline has definitely gone up over the past month and most experts expect it to continue its rise during the spring and into the summer.

Curious about how the price of gasoline goes up and down, and why?

This is a pretty good article describing the supply of oil, refineries, delivery of gas, etc.

Read it to be informed as the summer and higher prices come upon us.

THE STORY BEHIND GAS PRICES

DerDerDer

DerDerDer

This is one of the funniest things I’ve seen in a long time….and only in America can you get away with it.

My wife met the creator of this unique musical instrument last week, I went to the website, and can’t believe he’s getting $10 per toilet paper roll instrument.

Good for him. Frankly, his sense of humor is so in tune (no pun intended) with mine that I want to buy one instead of making my own just to support his great imagination and website.

Funny.