“Fear On” & “Fear Off” Markets and the Value of Market Punditry
Last quarter I wrote of the distorting effect fear has upon price in financial markets during panics and suggested that the long-term investor was better off focusing upon portfolio cash flow until calmer spirits returned. Fortunately, during the first and second quarters (and also during the “Great Recession of 2008-2009), income has proven to be […]
What of this, “New Normal”?
I was in the Scottsdale, Arizona area for our annual trip to meet with clients not so long ago. Today, thinking back on that trip, what’s striking is how uneventful it was. February is a good time to visit Arizona, the clients were (and always seem to be) content. Their good cheer reflective of how well markets had performed in 2019. One client had the flu and asked that we reschedule. I didn’t see that as a problem. Libby was making a follow up trip in April and would want to meet the same people anyway. Libby’s trip, of course, never happened.
A “Fear On” Market
Most of the time, financial markets find balance between fear and greed. Most quarters, while allowing for some winners and some losers, will have a slight overriding direction. This was not one of those quarters.
A Message From Our Managing Partner in Response to COVID-19
Clients and friends,
In our January 2020 quarterly newsletter named “Dividends”, in my piece “My Annual ‘No Prediction for Next Year’ Letter”, I made a statement regarding what to expect from markets in 2020. I stated:
“Here is what we can expect in 2020: stuff is going to happen, weird stuff, stuff we didn’t see coming and so it’s best to be ready”.
Without a doubt, we couldn’t have predicted the impact of the COVID-19 virus. However, I can say with certainty, Iowa Wealth Management is prepared and ready to serve our clients through these unsure times.
Decades… We’ve Known a Few
It’s late, the house is dark and I have some time to think.
A Few, Heartfelt Words about the Value of Work and Thanksgiving
Before I worked for money I had chores. My parents believed assigning chores was an essential part of raising children, so we all had our assignments.
Absent a Profit, New Issues are Rank Speculation
Is it important that a company reliably turn a profit? For most investors I suspect the answer is, most often, yes. Here at Iowa Wealth Management the answer is, always, yes. On Wall Street, though, where the need never falters to flog investors with new issues, the answer is too often no.
2019 Second Quarter Review…. Financial Market Roller Coasters
Quarterly results for financial markets often resemble my favorite roller coaster at Arnold’s Park Amusement Park on the shore of West Lake Okoboji. It’s a local landmark having weathered the decades and being a mandatory experience for generations of families. Every nook and cranny of its circuit having been endlessly discussed and debated. I would hazard to guess that by now over a million passenger circuits have been made over the old wood structure. A million shrieks of fear, a million laughs for joy and a million memories made.
Falling Knives and Speeding Trains
I was lucky to start my career at a small firm in Cedar Rapids, Iowa, Securities Corporation of Iowa (SCI). Lucky, in that SCI put an emphasis on teaching its brokers how to be portfolio managers and the CEO, John Knapp, took a particular interest in instructing the youngest members of the firm.
2019 First Quarter Review…. Keeping Calm & Moving On
Well that turned out well. Just three months ago financial markets were in free fall. Primarily due to three obstacles to our growing economy; 1) A shutdown of the Federal government.2) A Federal Reserve determined to raise interest rates3) A trade war with China While the trade war continues, items one and two were resolved […]