Word for the week is Education.
"Education is the most powerful weapon which you can use to change the world." Nelson Mandela
"My mother said I must always be intolerant of ignorance but understanding of illiteracy. That some people, unable to go to school, were more educated and more intelligent than college professors." Maya Angelou
"An investment in knowledge pays the best interest." Benjamin Franklin
"Education is not the filling of a pail, but the lighting of a fire." William Butler Yeats
"Education is learning what you didn't even know you didn't know." Daniel J. Boorstin
"It is the mark of an educated mind to be able to entertain a thought without accepting it." Aristotle
In investing there are no constants. The world is changing. Companies are changing. Your circumstances are changing. Adapting to change is the only way to achieve successful investing that matches the world, with your goals and needs.
It must be then, that education around all the things that add to a successful investment plan must be continual.
If you don't have time to keep up with economic data, geo-political events, investment product innovation, investment manager process and the ever changing environment in all of these areas, you may be better off handing the reins to professional investment advisor.
This past week I was in Kansas City and was briefed by a Washington DC insider about happenings in Iowa, listened to nine fund investment managers on their outlook and the processes within their particular fund disciplines and heard about some of the inside of decision making from a former General who was Chairman of the Joints Chiefs of Staff in the military under G. W. Bush.
Next Week I am in Des Moines learning about new Estate Planning Strategies and at Iowa State University Professional Advisor Conference.
I will tell you more about learnings at upcoming events for clients.
Today I want to point out some things about the following graphs and tables.
- You should notice that a comparison of Marrs Wealth Management's Benchmark Blended Index though on average is nearly equal to the S and P 500 Index in a blended 10 year return, outperformed in dollar weighted return and Compound Annual Growth Rate.
- You should also notice that given the downturn in the, S and P 500 large Cap US Stock market in 2007-2009, it took until early this year 2014 for stocks to catch back up the blended benchmark index.
- Rebalancing and managing a portfolio make a difference in providing added value.
- Marrs Wealth Management does not primarily use index based investments, we find managers and investments with superior management, consistent value added risk managed outperformance and we continually review and monitor those investment strategies and investment managers based on the changes inherent in your world and individual circumstances.
Despite outsized gains the last three years, some continue to believe the stock market carries no risk.
Most of the recent gains are a result of low borrowing costs to major investors, investment firms and companies buying stock.
All of this is artificially suppoorted by very loose monetary and fiscal policies that have not yet reached the overall economic environment to spur added growth.
With growth still below the Federal Reserves targets, Labor Force Participation dropping, entitlements growing, geopolitical tensions widening and stock price increases coming from price to earning expansion versus earnings growth, you may do better looking in other areas for investment exposure.
Marrs Wealth Management, LLC can help and guide you, with expertise that spans over the past 30 years through all types of market environments.
Alan Greenspan recently gave 9 reasons why the economy can't get going and why it won't anytime soon.
The S and P 500 index trended down last week. - 1.10%
The 10 year Treasury Yield index trended up last week.
The US Dollar index trended up last week. + .53%
The CRB Commodities index trended down last week. -2.12%
The Gold Index trended down last week - 2.98%
Inflation Linked Bonds trended down last week - 2.49%
US Aggregate Bond Index trended down last week - .66%
The International Aggregate Bond Index trended down last week -.90%
The New York Composite Index trended down last week. -1.46%
The Dow Jones World Index trended down last week -1.41%
The NCREIF Index is aggregated and reported quarterly and is a total return broad representation including rents and appraisal of non-traded Commercial Real Estate.
2014 2nd qtr + 2.91%
Year to date US stocks, inflation linked securities and real estate lead.
Many investors take the wrong approach looking primarily at recent return and average percentage rates. Overall risk measures and managing downside risk play an increasing role in end results.
Investors instead should be focused on managing Dynamic Beta exposure, evaluation Active Share, Sharpe ratios, Treynor ratios, Sortino ratios and Alpha ratios.
Please forward to anyone who may be interested in this information.
The above is for informational purposes only and not an offer or recommendation to buy or sell any Security. Past performance is no guarantee of future return. All decisions about investments should be made within parameters of risk, time frame, financial position and overall asset allocation.