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Don’t run from the market volatility – embrace it!

Like we discussed in our most recent market commentary video, investors like to sell in May . . . and that is exactly what investors are doing! The first two trading days of May haven’t been the best if your relying on short term bullish trades to make you money. In fact, I’ve had a few phone calls and emails from folks wondering if the bull market is over or if the market is finally due for a bearish correction. While no one knows for sure what’s going to happen, there are a few things that I would tell the investors and traders of the world. Investors: I would urge anyone with money currently in the market to relax . . . stay the course, ignore the volatility and focus on the long term trends (which are still bullish) and the global fundamentals (which are not in the danger zone as
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Categories: Markets and Strategy.

The Return of the Global Markets

The following is a portion of Iron Gate Global Advisors letter to clients. We removed specific investment advice, stock reviews and advice. That is for our clients only. For more information contact Brett Pattison at brett@igga.dev.  As the name of our firm mentions, we are global investors. We like to search the globe for those markets, countries and companies that are cheap (from a valuation perspective) and poised to grow. Over the past three years we have been allocated primarily to the good ole U.S. of A. This has turned out to be the right decision as the U.S. market (S&P 500) has out-performed the other global markets by 58.95%. The table below shows you the 2011 – 2014 performance numbers for the global markets. As we entered 2015 Brian and I talked with one another, and many of you, about the real possibility that the U.S. markets incredible streak
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Categories: Markets and Strategy.

What to do when the market is down 2%

Finally! A kick in volatility! Here’s some quick advice to both investors and traders. Investors: Don’t do anything. Relax. Stay the course. If the market volatility has you so freaked out then you need to seriously consider having someone else make the decisions for you. Traders: Take advantage of this volatility! Here’s a few ideas . . . Sell some puts. Be a contrarian and sell some puts on stocks that you wouldn’t mind owning. Stocks that have gotten away from you the past few months. Sell some iron condors. With the month of May fast approaching (where the market typically does nothing), we could be stuck in a trading range for a month or two. Take advantage of that by selling an iron condor. Below is an idea of how to construct it. Of course it’s just an idea NOT a recommendation. Sell some put spreads. If your portfolio
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Categories: Markets and Strategy.

Will the market volatility continue in April?

In this video IGGA Portfolio Manager Brett Pattison reviews what happened in March in the global markets. He also discuss what may happen in April as well as what “sweet chicken” is all about. For Iron Gate clients this video will help resolve any concerns you may have had with recent volatility. To discuss any of the items in further detail please contact Brett Pattison at brett@igga.dev.
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Categories: Markets and Strategy.

4 things you can do in today’s market sell off

There is a whole lot of red on my screen today! Below is what the current markets look like. The S&P 500 (/ES) is down 1.31% . . . the Nasdaq (/NQ) is down 1.55%. It seem like whenever a day like this comes that people are calling for the end of the bull market.             While no one knows if that is a legitimate call or not (we will know in the coming months), there are a few things that people can do during a little sell like we are experiencing today. 1. Sell some puts. If you’re in need of income or if there are stocks that you really like that you are not yet in, consider selling some puts. We talk more about this strategy in our Finding Income in Today’s market video. Click here to see watch. With the rise in volatility and the
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Categories: Markets and Strategy.

Words of Wisdom for Every Investor

The first weekend of March is one that we look forward to each year. It is the one time of the year where you have the opportunity to read what arguably the best investor ever has to say about investing, the market, the economy and much, much more. We are talking about Warren Buffett and his annual letter to his shareholders. We read each this letter religiously for the opportunity to learn from the “Oracle of Omaha.” This year was no different. Below is a portion of the 2014 letter. If you read nothing else you must read what we have pasted below. If you would like to read the entire letter just click here. (The bolded sentences below is our emphasis not Buffett’s.) From page 17 and 18 of the 2014 Berkshire Annual Letter . . . “Our investment results have been helped by a terrific tailwind. During the
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Categories: Markets, Personal Finance, and Strategy.

Buy and Hold vs. Timing the Market: Which one is better?

There is debate that has been going on for decades and decades. Of course the two sides of the debate both think they are correct  when answering the question which is more profitable, buy and hold or timing the market? Before I give you my thoughts and answer that question,(which is probably different than any answer you have heard before), let me attempt to make an argument for both. Buy and Hold To make sure we’re all on the same page buy and hold would mean buying a stock, ETF, or mutual fund at a price you are comfortable with and never selling it. That definition seems obvious and the concept seems simple. However, it’s probably one of the hardest investment techniques for most people. Emotions, fear, and lack of discipline are just a few reasons why people have a hard time staying true to the buy and hold investment style. Below
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Categories: Markets and Strategy.

Probabilities of Stock Investing

I recently saw a study that helped confirm something that I’ve known for many years but just didn’t have the data. It’s the probability that you will lose money on stocks based on holding them a certain time frame. The statistics shouldn’t be too surprising.   In the 10 years I spent in financial education I would witness these probabilities come true as people would “trade” their hard earned money away looking for the next home run. I could tell you sad story after sad story of those that just didn’t understand the importance of building a portfolio based on fundamentally sound stocks . . . stocks that you would actually want to be a business owner in . . . stocks that you may never want to sell. Warren Buffett said something as it relates to the types of stocks you want to buy . . . “when we own
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Categories: Markets and Strategy.
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