Spring Update

Greetings From the Wooding Group!

March 17, 2015

We know that the world feels like a smaller place. From an investment perspective, we can experience economic ripples that are felt from far away. Tiny countries like Cyprus have the ability to make waves, along with concerns of slowing growth in China as their economy matures and still closer to home, in reaction, the weakening of commodity prices. We could go on but we won’t. There will always be a “Crisis du Jour”, there always has been. Concerning situations will continue to occur; the world we live in is incredibly inter-connected with 24/7 news cycles.

That’s why we focus on strategic asset allocation with quality businesses at the core of the equity component of your wealth plan. We advocate a balanced approach to ensure you stick to the discipline, create retirement income streams, and are protected in tough times. Markets are inefficient. The financial impact of emotional investing can be devastating as it causes investors to behave irrationally. The good news is that irrationality creates opportunities for those who can resist it. We pay close attention to your portfolio, living as it were in a narrow emotional band enabling us to recognize trends and opportunities that are presented to us by irrational investors.

In the past we remember “short term” being defined as a year. Holding periods can be in the milliseconds in this day and age. Studies show that over 50% of the volume on major global exchanges results from investment strategies that hold their positions for less than a day! (Edgepoint March 2012). It’s impossible to predict day- to -day, or even quarter- to- quarter price movements but that doesn’t preclude some people from trying. Short- term out performance envy unfortunately entices investors into a cycle of perpetual under performance. A 2009 Dalbar, Inc. study of the 20 years (1989-2008) reports an Investor Behavior Penalty of -5.43% due to irrational behaviors vs. average professional wealth management returns. No matter the 20 year time frame a penalty exists. You can rely on our time tested approach to wealth management – a prudently managed portfolio and comprehensive financial plan, both foundational to ensure we provide a repeatable, consistent experience.