March 2015

The Art of Patient Investing

 Lowell Miller, in his book, “The Single Best Investment” makes the statement, “Long term investing is about character, about depth of vision and the cultivation of patience, about who you are and who you’ve made yourself to be.” There is no successful investor gene, and they aren’t able, yet, to clone Warren Buffett. Successful investors are made, not born.

We always try to educate our clients concerning what it takes to be a successful long term investor. As Miller states, it takes a depth of vision that enables the investor to see long term results through the cloud of pessimists, the hail of a volatile market and the storm of recessions. Investors must cultivate patience. They must establish reasonable goals and expectations and, above all, avoid the siren call of the doomsayers and end of the world prophets.

As we learn all of life’s skills the process is enabled by complete instruction, practice and a commitment to learning. This is where the financial advisor earns his/her keep. They help formulate achievable goals, structure viable financial plans, formulate portfolios to achieve the goals and encourage their client throughout the process. Most important of all, they are there to provide reason and sense when the financial world goes a little crazy, such as in 2007-09.

March 2015

Where Are We in Our

Current Recovery

I think most of you have heard my speech about our economy experiencing a recession (a decline in value of 20% or greater) every 5.7 years on average since The Great Depression. As of today our current economic recovery is at six years. The eleven bull markets since 1950 have averaged only 4.9 years.

 So, are we on the precipice of the next recession? I do not believe so. It is coming. It is inevitable but it’s not here yet and when it comes every investor will again be faced with two choices. The first is that this recession is different and the market will not rebound to ever greater heights as it always has before. The second choice is to exhibit some faith and repeat the mantra – “this too shall pass.” I choose the latter and I sincerely hope that you will also when the time comes.