Another up week for equities. The Dow Jones Industrial Average and the NASDAQ Composite posted their 9th consecutive week of gains and the S&P 500 Index has been up 4 straight weeks and is now only about 5% from it’s all time high. Do we even remember all the talking heads and their prediction of doom & gloom when the selloff of equities happened 4QTR2018? In the second edition of his book, “Stocks for the Long Haul”, author Jeremy Siegel wrote, and I quote, “Fear has a greater grasp on human action than does the impressive weight of historical evidence.” Kudos to those of us that stayed the course and didn’t give in to a very real human emotion, fear.
So, as we head into another week and month, there is no change in our money managers’ investment approach, that is, to stay fully invested with the unique strategies I continue to mention. One factor is a built-in strategy for a yearly cash flow, in addition to dividends, interest and market returns. In a rising market, the portfolio values tend to go up more than just the market returns. Another ingredient included is that, in the event of a sudden and dramatic drop like 9/11, the portfolios are designed to recover most, if not all, the losses. The only drawback is that, if the markets trend down, these portfolios will underperform market returns as we saw in the 4th quarter of 2018. (There is no free lunch) And, please always remember there are no guarantees when it comes to investing in the equity markets and investing does have risks.
I’m posting another article relating to this time of year that we all love, tax time. (And you thought I was talking about spring.) I can’t imagine the shock of finding out that someone has filed my tax return or used my social security number to get a loan. The attached article may help us be prepared for such an event. Also, there are several companies that offer identity protection, and of course, charge for this service. You might want to check this service out as the world gets more complicated and the crooks are better equipped that we are.
As always, should you like to talk or meet with me, please call or email and we will schedule something. I am in the process of moving my office, but all contact information will stay the same. Now, go out and have a super day!