Investing Time Horizons
Looking forward to a night with our 8-year bouncing off the walls tonight. She declined some candy the other day because as she said “She was saving herself for tonight”. Already planning at her age... We have 3 older kids: 19, 17 & 16. It feels like yesterday that they were going door to door. How time flies…
In the investment world, time is a risk reducer. We think about time horizons for both our clients and the portfolios we manage. When I’m asked about the time horizon of the portfolios I always answer “forever”. Each position I have in the portfolio, I plan on keeping for the loooong term. I have earnings expectations for each of our companies; however, each of the businesses play their part in providing overall diversification and either growth, income or a combination of both. It usually takes a change of direction or not being unable to hit their targets consistently when measured against the overall economy and their competitors before we will give up on them.
For you, my time horizon is your life expectancy. The financial planning software we use will highlight a suitable investment strategy designed to help your plan to succeed. I measure success by never running out of money.
At Raymond James, we use Goal Planning & Monitoring proprietary software. I leverage the software in recommending your asset allocation. If you don’t need to take excessive risk to achieve your goal, then I won’t be recommending it. The focus from my perspective is to ensure that we don’t add excessive risk by letting emotions get in by market timing or over exposure to any one asset or class of assets. The math works, don’t try to outsmart it.
As for the markets its freakish how close we are sticking to our target line in the last two months. Although this feels ok, it’s not normal, nor do I expect this to continue.
Source; MG&A
I’m still an advocate for holding cash and well see how things play out through the election.
As always should you have any questions, please feel free to give me a call.
Any opinions are those of Mick Graham and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. Inclusion of these indexes is for illustrative purposes only. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. Holding stocks for the long-term does not insure a profitable outcome. Investing in stocks always involves risk, including the possibility of losing one's entire investment. There is no guarantee that any statements, opinions or forecasts provided herein will prove to be correct. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Diversification and asset allocation do not ensure a profit or protect against a loss. The projections or other information generated by Goal Planning & Monitoring regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Goal Planning & Monitoring results may vary with each use and over time.
The projections or other information generated by Goal Planning & Monitoring regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Goal Planning & Monitoring results may vary with each use over time.
