Broker Check

2015 Client Letter: Once Upon a Time…

October 12, 2015

Once Upon A Time….

It seems like every nursery rhyme I read to William begins with “Once upon a time.” So I’ll start this brief missive with “Once upon a time, there were capital markets that went up and down.” We know this story finishes with the trend historically finishing “up.” The few times one or two of our clientele have been “hurt” in my near 30 year career, have been when I let them talk me into sitting on the sidelines (better known as cash). When I say, “hurt”, I don’t mean they lost their savings. I mean they didn’t reap the benefits that participating in the capital markets provide. As a result, they didn’t do as well as the rest of us. I know now to push back even harder if clients get nervous.

I’ve had a few folks recently ask me, “How are you holding up with this crazy market?” Well, my answer is “Which market are you referring to?” You see, a properly diversified, globally allocated portfolio offers all of the potential returns that exist out there, across all markets. So how are we holding up? Well, when the S&P was down about 10% a week back, our portfolios were about level. I’m happy with that! We see this time as an opportunity. When others are selling, someone must be buying right?

Clients that have been with us ten or even twenty years know we’re holding up just fine. They know we’re going to continue to do our job, keep them invested, and keep them properly allocated. I’ve had a couple of newer clients ask me if they should stop contributing or stop investing until things get better. So you’re telling me you want to wait until prices go back up? So much for the old saying, “Buy low and sell high.”

In any event, don’t let these “markets” bother you. Stay the course, keep focused on things you can control, like tax planning, estate planning, and planning for your legacy. Leave the markets to the markets. Invest globally in low cost, tax efficient diverse portfolios that have proven themselves time and time again.

Now back to the “Once upon a time” stories. Our best to you all and have a great week!

Tom Wiseman and the team at Wiseman Wealth Management