What Have We Learned?
 As we began a new year, Margaret Wittkopp shared some of her thoughts. Even though we are now well into 2010, the philisophy shared here remains the same--and nothing in 2010 has indicated that it should be otherwise. Read on to find out part of the reason we say we are unlike most traditionl investing firms.
As 2009 began, we continued to experience the greatest continuous bear market (a decline that began in 2007) since the Great Depression. A turning point was finally reached on March 9, 2009.
We learned there will likely be no “quick fix” for our economy. And I found out that our investing philosophy works! Market timing does not work! Stock picking does not work! Track-record investing does not work!
The financial industry talks a good game about Modern Portfolio Theory and the value of being diversified, but how do they apply it? Sadly, most of the time it is “business as usual,” and the emphasis remains on actively-managed funds. That works well for brokerage companies. Remember the big bonuses to CEOs? It doesn’t work so well for the individual investor.
A strategy of waiting out the market doesn’t work so well either. The road to the bull market is littered with the bodies of those who waited for just the right buying opportunity or just the right prognosticator. It was just about a year ago that Bernie Madoff admitted to his multi-year Ponzi scheme.
Sometimes we are more comfortable with our long-held illusions than with TRUTH. Remember when everyone believed the earth was flat and that the sun revolved around the earth?
So what does work? Our approach remains the same. Be fully invested at all times, with the right asset allocation and risk tolerance, and you can receive market rate of return over time. If you have long-term goals you won’t likely be hurt as much as the investor who sits with cash while the market rebounds well over 50% (as it has done since March 9th). Proper asset allocation and a truly diversified portfolio can tolerate (even profit from) fluctuations in the stock market.
How does your portfolio compare to the market as a whole? Would you like to find out? Call us at 920 (or toll free:888) 893-5262 for an individual Free Market Investment Analysis (FMIA). Make 2010 the year you gain peace of mind about investing!
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