A lesson from one of the great ones

To those that are familiar with our firm and the content that we write, Howard Marks should not be an unfamiliar name. For those that are not familiar with him, Mr. Marks is one of the great value investors of our time. He authored one of our firms favorite books, The Most Important Thing. We urge everyone to read it. This week Mr. Marks was on Bloomberg T.V.’s morning television show. He offered many pearls of wisdom including one of our favorite clips below. Mr. Marks discusses: The only intelligent from of investing.  His current take on the markets. The importance of being an above average thinker or “superior investor.” How to handle the lack of liquidity in many markets including the high yield market. We hope you enjoy it as much as we did! Click here to view: http://bloom.bg/1R9RV5C  
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Categories: Markets.

Flashback: An important perspective from 2009

While we are not facing a crisis as we did in 2009, the psychology of investors, analysts (both fundamental and technical) hasn’t changed much . . . if at all. The following article appeared in the Wall Street Journal on March 9, 2009, the very week the market turned on a dime and rallied higher. We post it at this time so that you can learn from the past in an effort to help you avoid some of the same mistakes that many made in 2009.  Our message is simple . . . ignore the day to day fluctuations of the market. Buy companies you know and understand and are trading at a value. Plan on owning these companies for the next 2, 3, 5 years. That’s it. Enjoy the article Dow 5000? There’s a Case for It Strategists Still See Rally, but Earnings Point to 1995 Levels for Stocks By
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Categories: Markets and Strategy.

Why we’re optimistic in the face of the bear

As I spent some time preparing this month’s Iron Gate Market Commentary I was considering all the fear in the market. And I decided that is what I wanted to focus on – the Bear. And specifically, why you absolutely should not panic in the face of the Bear. Investors who act based on fear, on downward trends and trying to time the market nearly always find themselves losing out on great opportunities and destroying their 5, 10 or 30 year financial plan. If there is one piece of advice that I have, and I go through it in detail in this month’s Market Commentary, it is that discipline and sticking to your guns in a down market is what leads to long term success. This month I also give you some very specific things that we do in a down market including: utilizing this time of decline to accumulate
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Categories: Markets and Strategy.

Fear has taken over the market. Why you should be optimistic.

*The following information was taken out of the Iron Gate Global client newsletter. Portions have been removed where specific investments were addressed. For more information please contact Brett Pattison, brett@igga.dev What a fantastic time to be an investor! The S&P 500 is down over 6.15% in the last year. The global markets are and down 15+% over the past 8 months. The average S&P 500 stock is down -20% from their highs taking many of our favorite investments with it . . . you might think that being optimistic sounds crazy! Let us tell you why it’s not. First off you must realize that being optimistic with the market pulling back is hard! Your brain is designed with a survival instinct. You will do whatever you can in the short term to survive. Hunger, thirst, fatigue, cold, hot . . . whatever the situation your brain and your body will fight for
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Categories: Strategy.

Why I Love Market Volatility

Income Genius is a monthly newsletter from Iron Gate Global Advisors that reviews methods for intelligently generating income from your investments. In this month’s Income Genius we discuss why volatility can be a good thing from an income perspective when you effectively utilize covered calls. ======================== There are two great things about stock market volatility including the volatility we are experiencing now. You can buy great businesses (stocks) that are on sale. Those stocks that you have wanted to own for a long time but haven’t. You can sell options to create an extra income stream and to protect assets among other things. Today I’m going to focus on number two – options . . . We implement many different strategies for our clients. Strategies for protection, income, or taking advantage of a falling market are a few reasons we use options. In today’s Income Genius I want to focus on
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Categories: Markets.

A Short Term Market Rainstorm

One of our favorite places in all the world to vacation is the Garden Island in Hawaii, Kauai. There is nothing better than hiking the famous Kalalau Trail that overlooks the famous the Nepali coast. It’s one of the most beautiful places we have been which keeps us going there over and over. The one thing we’ve learned through our multiple trips is to prepare for anything. One minute the weather will be beautiful, the next minute you could be in the middle of a jungle rainstorm (they call it the Garden Island for a reason!). A saying that we have come to know through our time there is “if you don’t like the weather, wait five minutes.” This is because the rain normally doesn’t last long before the beautiful weather comes again. The stock market acts in a similar way. As we enter 2016 it has been raining. The market has left
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Categories: Markets.

A famous stock market parable: Mr. Market

One of the greatest stock market parables was given by the famous Benjamin Graham and reiterated by Warren Buffett in his 1987 shareholder letter. It’s a parable that puts the day to day, week to week and month to month stock market movement into perspective. Below is a copy of that parable from Mr. Buffett’s 1987 shareholder letter. We hope you enjoy it as much as we do! The why is best explained by the great Benjamin Graham.  Warren Buffett quoted it in his 1987 shareholder letter. The following is taken from that letter (our emphasis added): Ben Graham, my friend and teacher, long ago described the mental attitude toward market fluctuations that I believe to be most conducive to investment success.  He said that you should imagine market quotations as coming from a remarkably accommodating fellow named Mr. Market who is your partner in a private business.  Without fail,
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Categories: Markets.

What every investor should do . . . but very few will.

We live in a world of immediate gratification. From entertainment to shopping to the markets . . . people want it done well, done cheap, and done right now! For entertainment and shopping, those requirements may be possible. For the markets . . . no way.  One of the problems investors have is something that may not be their fault. We have several news channels focusing 24/7 on the global markets. We have the world wide web, Twitter, and other formats where information and news is constant. We have major brokerages (Schwab, TD Ameritrade, Fidelity, Scottrade, etc.) that make millions on trading revenue. They call it DARTs (daily average revenue trades) in the industry. Despite knowing what is best for clients some of these brokerages spend millions and millions pushing active trading because it makes them a ton of money! We are inundated with short term this and short term that.
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Categories: Markets and Strategy.

Will 2015 Be Another 2016 for the Markets? IGGA Market Commentary

At IGGA we are kicking off the New Year with our regular Market Commentary, however this is a special edition because we have a heavy emphasis not just on the month behind and the month ahead. This time we’re looking at the full outlook for 2016. I start off with a perspective on 2015 and a look at specific global indicators along with an assessment of major market sectors and how we’re weighting IGGA client’s across those sectors. Then I get right to the heart of the matter. Is 2016 another 2015? I discuss the likely outcome from a probability perspective. We discuss the specifics of three major areas: What we typical expect to see after a flat year What a Presidential Election year can mean for the markets The probabilities that accompany rising interest rates And as always I’ll review how we at IGGA use a probabilities based approach
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Categories: Uncategorized.