My Favorite Four Letter Word

There is an adage about how golf got its name… all the other four-letter words were taken.

As a kid growing up in Kona, golf was something I played often and did well, especially the longer golf shots, anything beyond 100 yards. ‘Grip and Rip it’ was my mentality- often ignoring the finer aspects of the short game, which is anything under 100 yards.

In golf, you generally have 14 clubs in your bag, and they all have different purposes. Some for the longer shots and many for the shorter shots. There is even a putter that is used for hitting a golf ball into the hole once it’s on the green.

Unfortunately, my ‘Go Big or Go Home’ golf mind set did not encourage me to practicing putting. For me, half of golf was fun; the other half was putting.

Successful golfers know that to get the ball in the hole, they must use the assortment of clubs consisting of ones that are meant for 100 yards plus or in Investment terms (stock funds) and clubs that are meant for anything within 100 yards (Bond Funds and Cash Instruments).

There were times when I was playing and shooting well that all I can think about was playing more, but there are other days when the game got so frustrating it became a ‘good walk ruined’. Similarly, Investing can be quite comparable.

If the 2021 Investment market was a golfer, he/she would be considered an ‘Ace’, with all Investment Markets doing well. Conversely, 2022 (a much more difficult year, where all the different assortments of Investments used to diversify a portfolio struggled) he/she would be considered a ‘Duffer’.

In fact, according to the Daily Shot/Bank of America, this is only the fourth year in over 300 years where the global bond market (generally the conservative investments or in golf terms, clubs used for the shorter shots), has experienced such negative returns as a percent of GDP (the others being 1721, 1865 and 1920).

With Diversified Investment portfolio’s having such a challenging 2022, I would suggest that 2023 may look different. Stock and Bond valuations are much more improved from the beginning of 2022, which would usually imply greater future returns.

And so, before you buy a new putter because your old putter didn’t float so well (or change direction with your Investment Plan) I would like to share words that came out of mouth so often when playing a lot; “I hate golf, I hate golf, I hate golf… NICE SHOT!! I love golf!”

Any opinions are those of Taylor Easley and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Prior to making an investment decision, please consult with your financial advisor about your individual situation