Being smart with $$ - Rules for investing

Investing rules (per K. Kristof in Kiplingers Nov '15): 1) Diversify your investments (not all eggs in one basket); 2) Rebalance (yesterday's outperformer is often tomorrow's underperformer); 3) Dollar-Cost Average (keep investing regularly); 4) Keeps Costs Down (investments with high fees will underperform more often than not).   She forgot to mention: Save first and only spend what's left (you can't control how well the markets do but you can control how much you add to your accounts.)
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with money - Markets don't do what you think

The stock market is easy to predict, right? Bad news makes it go down and good news makes it go up, right? So terror attacks should lead to stocks falling as airlines and hotels will surely make less money. So if you traded on this idea, you have been fooled by the notion above. The overall market has been up all week.  Stick to buy and hold. Stock market winners are those who buy early and often and stay the course.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Lucky or good?

Are successful money managers actually talented or are they just lucky? Far less than half succeed in beating a simple index of stocks which is worse than flipping a coin. Kiplingers columnist and hedge fund manager Andrew Feinberg announced he's giving up and going mostly with index funds to be sure of getting average returns. (Nov '15)  You can increase your chances of outperforming money managers by doing the same. This is a case where average is very good.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Even Warren Buffet can't time the market

Do you buy and sell stocks when they seem cheap or rich?  Warren Buffet says he has 0 ability to time the markets.  But he says he knows "stocks are going to be higher, and perhaps a lot higher, 10 years from now, 20 years from now."  (Kiplingers Nov '15) So he invests how you're supposed to:  buy and hold for the long term and don't let short-term volatility spook you.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Stocks recovered but what's next?

Remember when we were all panicking about the stock market? Well October was great and large-cap stocks are UP for the year! Where are stocks going next? No one knows (especially in the short term) but I'm betting my retirement money they'll be higher in 10 years and if history is a guide, the odds are with me. 

Larry Pike, CFA

www.clientpriority.com