(This blog post was written at around 4AM on Friday, June 24. It was supposed to have been email blasted to our clients at 9AM that morning, but a technical problem prevented it from being distributed at that time.)
As I write this, 4.5 hours before US markets open the WSJ is reporting that Britons have voted, by the slimmest of margins to leave the European Union. The Stoxx 600, a European stock index is down 6.59%. (UK markets open 6 hours before US markets.) Given news like this investors must decide whether to try to respond so as to profit from it or to avoid quick reactions. My belief is that an “immediate” response would not likely be immediate enough to have a good outcome. So called after hours trading, which is largely limited to big players will have removed any opportunity for profit on this news by the time US markets open. In fact, usually in a case like this the markets will have anticipated the news well in advance of an announcement. So, my response is to look for good reasons and good times to adjust positions based on a long-term view and my clients’ particular investment policies. Our rewards come from a good long-term strategy, not short-term trading.
You might have noticed that I haven’t posted much during the past few weeks. It’s not that I don’t have good stuff to share. In fact, I have a growing backlog of topics, comments, facts, opinions, funny memes and jokes that I intend to post as time permits. Lately, time has not permitted, but that will change.
For now I would like to share just one bit of information regarding a new service that we will be providing in the coming weeks. It is a secure, web-based connection point, kind of like Mint.com, but better, which will allow our clients to more easily track their income and expenses, and their progress toward their financial goals. The client portal will be constantly connected to our advisor portal. Information and communication will be improved. It’s a 21st century thing.
OK, two bits of information. If you have had difficulty logging into your web portal from the menu atop the FPAI landing page please try again now. If you still are unable to log in to your secure folder please let me know.
Late one night a mugger wearing a ski mask jumped into the path of a well-dressed man and stuck a gun in his ribs. “Give me your money,” he demanded. Indignant, the affluent man replied, “You can’t do this – I’m a US Congressman!” “In that case,” replied the robber, “Give me MY money!”