Q1 2018 Mix Tape

Each week we read dozens of blogs, articles, whitepapers and presentations as part of our investment process. Below are some of the most important slides, charts and commentary about the economy, markets and industry trends for Q1.

Key thoughts: (If you find this of value, please share with your friends and family.  It is amazing how many people need help and are paying way too much in total fees.  I regularly see brokers and banks charging total fees of 2% to 2.5%!  Shocking!)

• Over the short-term, markets are highly emotional.  Over the long-term, they are driven by fundamentals, revenue, growth, profits.  Global diversification works.  Philosophy, Strategy, Process and Discipline.
• Markets are always uncertain.  This is why stocks tend to return more than cash over long periods of time.  You get paid for taking risk and investing when information is uncertain and not fully known.  The goal is to grow your money above the rate of inflation over time.  This helps to grow your purchasing power and real wealth.
• The volatility in 2018 is normal.  2017’s extremely low volatility and high returns was not normal.  See slides below.  The average intra-year decline is -13.8% since 1980.  In 2018, we are about -10% from all-time highs.  Also see this blog – Risk Always Happens Fast
• We are in year 10 of a bull market.  Stocks are up 372% to 430% from the 3/2009 lows.  We should expect lower than average returns moving forward.  If you are worried about the markets, I suggest you focus on your savings rate and possibly slightly reduce stocks.  Most clients in accumulation mode need to target saving 15% to 20%+ of gross family income to support their desired lifestyle in retirement.  If you have a portfolio of over $500k and would like a free second opinion about your strategy and hidden fees, click here to schedule a meeting – https://calendly.com/todd-iia 
• Most people need a coach.  Focus on what you can control.  Saving, spending, your job, your family, your health.  Stay diversified and don’t chase hot returns.  Be ready to rebalance when we have a -20% to -40%+ pullback in stocks.

Thanks for reading.

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