Do you remember what happened right before the peak of the dot com bust? Before rehashing any history let’s quickly revisit a quote that has been used and altered by several over the years:
“Those who cannot remember the past are condemned to repeat it.”
– George Santayana (former Harvard professor and philosopher)
Right before the needle slowly approached the overly inflated (tech/internet stock) balloon in late 2000…it was not uncommon for a financial advisor to field phone calls requesting to buy stocks like Cisco Systems (CSCO). OK…at least one could make a case for a company like that, albeit overvalued, as they actually earned money and had a viable business plan. It’s when those phone calls turned into “how about we also buy some of this stock I’ve heard called EToys?” Investors…(cough)…speculators poured money into so many internet startups with the hopes that these companies would one day turn profitable. We all know how this party ended and like many other past bubbles it won’t be the last. Continue reading →
Almost every letter we write to you has to do with educating people about building or protecting wealth. At the end of the day, however, what does it all mean? Real wealth is more than a number, a status, or some level of material achievement.
To date the best articulation of this (in our opinion) comes from the alleged letter that Apple co-founder Steve Jobs wrote from his death bed. We note “alleged” in that sources closest to him recount it differently but none the less, this is an incredibly powerful message. Continue reading →
For years the world has had a love affair with Apple (AAPL). It has become an amazing company delivering mind-boggling performance to its shareholders while creating a loyal following with its consumers. Over the last 10 years it has rewarded its investors with returns over 1,400%! As volatility has returned to the markets many are asking if this ship has sailed and whether Apple will become another technology stock of the past, replaced by the new ‘tech darlings’ of today. In our opinion… this statement couldn’t be any further from the truth. We feel that the market is presenting investors with a rare buying opportunity in a phenomenal company that is positioned to remain an industry leader for years to come.
Why is it that people want to buy a stock as it breaks all-time highs? It’s like going into your favorite retail store only on days when they announce that they have marked up all the items you wish to buy. If you were tempted to “take a bite out of the Apple” as the stock approached $140, why wouldn’t you want to buy that same company for almost $30 less per share? Did something change dramatically with the company, their management, or the competition? Continue reading →
If you’ve never experienced a stock market correction until now (technically defined as -10% or more), you have either never invested or have only been investing since 2012. For the vast majority of others, you should know that markets “correct” on average at least once every 12-18 months. One reason why this feels worse than other corrections is because we just went 47 months without a correction of -10% or more! (third longest streak on record)
For a refresher, stock market corrections are short and sharp declines of -10% to -20%. They’re typically accompanied by sensationalized stories such as the European sovereign debt crisis, Greece’s exit from the Euro, or the “fiscal cliff”. For all those investors that ducked for cover and went to cash during the last correction you saw the Dow Jones move up over 6,000 points. Were you able to correctly “time” your reentry into the market? No…and you’re not alone. No matter what you read or hear there is not a single person or professional advisor that owns a crystal ball and can consistently time the market.
If you’re new to this monthly series…remember what we’re doing. This exercise, as we like to call it, is not an attempt to pick the best stock or “time the market”. We leave that futile task to those who own time machines and accurate crystal balls. For a refresher, see our first article on the MPG Core Tactical 60/40 Portfolio.
Here’s the current summary of the MPG Core Tactical 60/40 portfolio mix, which is updated as of this writing (September 1, 2015).
Click here to compare our portfolio against the benchmark.
From the last week in July to this writing the MPG Core Tactical 60/40 portfolio went down -4.49%. How did the rest of the markets do? Continue reading →
Technology is a bit like true love. You have to believe in it but it can also bite you in the ass.
Read through this article and you’ll see how this relates to a particular investment!
The technology Industry can be a challenging sector for investors. Perhaps the best way to describe it is with a popular saying … “the one constant is change itself.” Plenty of analysts and investment firms scour through stock ticker symbols looking for the next Apple (AAPL), Amazon (AMZN) or Google (GOOG).
We couldn’t help but notice the Motley Fool’s recent …shall we say, “stock pitch” about a company that could be your next homerun! If you’re a die-hard Apple fan, wouldn’t you like to know who their next HUGE inside supplier is? Rewind the clock and take for example the desktop computer or the cell phone you have within inches of your hand right now…
Put Apple, Sony or IBM on the shelf for a minute and think about investing in the next company that has a stake in every sale regardless of the brand you choose? In other words, buy the “chip” or technology that’s inside of each device instead of trying to figure out which phone or computer manufacturer is going to win the battle. Continue reading →
The 2014 NCAA Basketball Tournament certainly had an eventful weekend! 52 games have been played across the country with 5 of them going into overtime. The $1 Billion that Warren Buffet offered to anyone that had a perfect bracket is now a distant memory. Every year there are plenty of surprises and this year has been no different:
3 of the 4 teams that were seeded as #12 in their brackets posted wins over teams seeded #5! The one team that lost was beaten by only 3 points in overtime!
#1 seed and ‘media darling’ Wichita State lost to #8 Kentucky in the 2nd round.
The 2 longest winning streaks in the country have both come to an abrupt end – Wichita State with 35 and S.F. Austin with 29.
Here are some other mind boggling numbers to take into consideration with the NCAA Tournament:
The odds of winning Buffet’s $1 Billion prize was 1 in 4,294,967,296!
It is estimated that Vegas takes in over $100 Million from bets on the NCAA Tournament – experts think this represents only 4% of all the money wagered on games!
The NCAA tournament costs businesses $1.7 Billion in lost productivity during the month of March.
We understand you’re likely quite busy the past couple of days with some of the whip saw action in the markets. Maybe all the debt crisis news with Cyprus has you in a sour mood? Perhaps you haven’t had time to look at your NCAA brackets? What if we asked you to choose Indiana or Intel? Now are you interested?
March Madness is here! We’re proud to roll out another year of our spin on March Madness. How does a collegiate basketball tournament that captures the majority of America tie into the investment world? Well, aside from the massive amounts of money and time that gets allocated to this event, there are some connections worth looking at. For the past few years we take this time to pontificate which asset classes and what specific stocks may outperform their respective benchmarks over the next year. We happen to be avid sports and hoops fans but as financial advisors we’re joining both passions to attempt to connect some dots. Continue reading →