The View!

A recap of the week ended October 26th. One of my favorite songs growing up was Elton John’s Crocodile Rock (Side A).  Released in 1973 on a 45 rpm, it was paired with Elderberry Wine (Side B).  Crocodile Rock went to #1 while Elderberry Wine was panned by most critics, forever banished to the Side B junkyard.  Last week, every big story peaked like a #1 hit record capturing the attention of media and public alike.  Meanwhile, over on Side B,  those in the investment community who subscribe to a diversified approach to investing, probably finished the week scratched, unbroken and ready for another spin around the turntable. The A-side During the course of any given week, I try to focus on what seems most important as it relates to the work I, and everyone at Clearview Wealth Management, do for clients.  This typically means tuning in to a few key economic data points, some global geopolitical news and, as a little diversion, a few sports’ stories.  My view being, short term market and news cycles will always be with Read on! →

The “Gambler”

  You’ve got to know when to hold’em Know when to fold’em Know when to walk away Know when to run… The Gambler (released 1978), lyrics by Don Schlitz, vocals by Kenny Rogers   Growing up in rural western Kentucky, it shouldn’t come as a surprise that country music stations littered the AM/FM radio dials.  The Gambler received significant air time not only on country stations but also pop stations as the country sound began a “crossover” from its honky-tonk roots to arguably, the more mainstream pop or Top 40 genre.  While our method of following disciplined allocation strategies doesn’t correspond with the chorus, the lyrics do seem to reference the subtleties of reading a situation and taking steps (in a portfolio) that might work to one’s advantage.   The Winning Streak To date, 2017 has been a positive year for equity and bond markets alike.  It is always gratifying to see client portfolios increase in measured increments without the anxiety that often accompanies a sharp peak or a deep, extended valley.  What may be less obvious is the un-harried Read on! →

Just Dating? 3 Money Topics to Discuss before you get Serious!

Cheryl Sherrard, CFP was quoted recently in a Learnvest article by Meghan Rabbitt, entitled, “Just Dating?  3 Money Topics to Discuss before you get Serious”. Dating discussion #1 included talking about your family money histories. For instance, if he grew up with no money, he may have an inordinate fear of never having enough. On the flip side, if his parents always forked over cash, he may have never learned to delay gratification, says Cheryl Sherrard, a Certified Financial Planner™ (CFP®) and director of financial planning for Clearview Wealth Management in Charlotte, N.C. Knowing what shaped his views can help you compare his experiences to your own and see where your differences may lie. “I think people tend to assume that everyone else will deal with money the same way they do, and don’t think about the fact that money—or the lack thereof—can carry huge emotional ties as well,” Sherrard says. Dating discussion #2 focused on your Debt Situation. Debt can be a squirm-inducing, four-letter word in the realm of dating. But it ranks high on the list of important Read on! →

Mimi’s cathedral quilt and asset class performance

My grandmother was exceptional in many ways.  She was full of life and quick to speak her mind, despite who might be within earshot.  For as long as I can remember, she was a seamstress at a local women’s clothing store making adjustments to colorful textiles until they fit “just right”.  It was always a special treat to visit her at Bright’s and explore the lofted balcony where she and Ms. Coreen worked to fine tune hemlines, inseams and sleeve lengths. Mimi’s work to outfit the ladies of Paducah did not stop at Bright’s.  Many family dinners and visits included talk of fabrics, McCall patterns and sales at Hancock’s,  Paducah’s one and only (I think) fabric store.  This love of cloth and sewing spilled over to all family members in the form of shirts, blouses and dresses.  As a teenager, I am sure some of the outcomes (think leisure suit) and fabric choices were greeted with a somewhat forced smile and gratitude. As her grandchildren grew and the need for clothes (that she knew we would wear) waned, she shifted Read on! →

Why Emotional Decisions May Be Ruining Your Investment Return

Choppy markets can lead to emotional decisions. How do you keep your actions in check when emotions are running high? A recent J.P. Morgan Market Insight shared the following observation, “While institutional investors typically follow policy targets, which naturally enforce disciplined investing, retail investors face behavioral biases that often stand in the way of optimal decision making.  Overcoming behavioral biases requires discipline and guidance, but it may help investors generate more attractive returns in the long-run.” In looking at the first chart below from J.P. Morgan, you will notice that retail investors (the “do-it-yourselfers”), on the whole, are acting in complete opposition to institutional investors in the markets.  The result of these opposite actions over time is that long term returns earned by the average investor are well below what actually occurred in the markets, as can be seen by the second chart below.         These vast differences in actual returns can be at least partially explained by the way investing decisions are made in institutional environments vs. retail investors.  Rather than following regimented guidelines, individual investors subconsciously allow behavioral biases Read on! →