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Malcolm Gladwell, Popularity, and Investing

**The following is taken from our client quarterly newsletter. Certain sections have been removed that contain client only information.    One early morning while I was out running I was listening to an iTunes podcast by Malcolm Gladwell. It was published on June 29 and is called “The Big Man Can’t Shoot.”   Almost the entire time found myself saying, “Our clients need to hear this!” So with that in mind our quarterly commentary will have a Malcom Gladwell twist. In the podcast Mr. Gladwell details Wilt Chamberlain and his famous record setting 100 point game in 1962. In that game he shot 32 free throws sinking 28 of them (this is still a NBA record). What few people remember about those free throws was that fact that he shot them “granny style.” In other words, his arms would hang down by his knees and he would flick the ball
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Categories: Markets and Strategy.

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.

Early Volatility to Begin the New Year

Half way through the first month of 2015 the S&P 500 is down 2.5%. Terrorism, a European recession, bad earnings and other headlines have investors across the globe are running into safe investments like government bonds. This January move actually reminds me of what happened just a year ago in 2014. The S&P 500 finished January of 2014 down -5%. That was the low point of the year as the U.S. market rallied to finish the year up 14%. This volatility to begin the year shouldn’t cause anyone to panic. It shouldn’t cause people to worry that the six year bull market is over. Rather it should be an opportunity. Let me explain . . . There is a “fear index” in the market known as the VIX (S&P 500 volatility index). To keep it at a very, very basic level, when it spikes higher there is “fear” in the
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Categories: Markets and Strategy.

Market Commentary: Will we finish 2014 strong?

Coming off of one of the best bullish years in recent memory (2013), the question entering 2014 was whether we would sustain the bullish move. Well, so far the answer is wholesale nfl jerseys a resounding “YES!” The S&P 500 is currently sitting at a 9.8% return year to date. Healthcare, Technology and Consumer Staples have led the market with 22.02%, 14.55% and 10.04% returns respectively. Despite these positive returns in 2014, this . year hasn’t been without some market volatility. October saw the market pull back 10% for the first time in two years causing some to wonder whether the end to the bull-run has finally run its course. Listening to the mainstream media potentially enhanced these fears and created undue concern. It is our job as your Financial Advisors to look at the global markets and lay out the facts in an attempt to answer the question, “Will
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Categories: Markets.
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