Financially Speaking Podcast

We Never Let Go

Published on March 30, 2012

A recent article in the Wall St. Journal shared the story of a stock mutual fund manager who maintains a buy-and-hold investment philosophy. Like him, every investment professional must adopt a philosophy for making investment decisions. The question is will the investment professional stick to the philosophy when times get tough.

 

The article explains that the fund manager competed in the Iditarod sled-dog race. The race requires the driver to steer 16 dogs for nine days and nights over 1,000 miles of the wilds of Alaska. It’s probably the most grueling and punishing sporting event in the world. Imagine falling off your sled, miles from another human, in rough terrain while enduring 20 degrees below freezing. "Never let go of the sled," says the fund manager. Never let go.

 

Last summer, the financial markets once again tested the emotions of investors and tested the resolve of investment professionals. Once again fear drove investors to abandon their investment plans, while many investment advisors abandoned their philosophy. They succumbed to the worst-case scenario in a Euro melt-down and a failing US economy. They let go.

 

We told you that although these scenarios are fearful and difficult to understand, somehow the crisis seems to work its way out. They always have. Now the US economy is exceeding expectations and the Greece crisis is almost a non-event. The stock market is now breaking through multi-year highs. You can see the difference in your monthly account statement.

 

We believe in our philosophy for managing your wealth. We never let go. 

Tags: market timing; investment philosophy; wealth management

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