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June 21, 2010 |
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Greetings!
I know many of you are unsettled by the market's recent volatility. In an effort to give you the tools necessary to approach your investment decisions in an objective manner, I am providing a series of letters entitled Bear Market Survival Kit. Below is our most recent addition to the series and also two prior issues.
If you find our articles helpful, direct your friends to our web site to sign up for our newsletter or simply forward this email to them by clicking on the "Forward Email" at the bottom of this newsletter.
As always, we enjoy hearing from you. To provide feedback, simply email us.
Best,
John A. Frisch, CPA/PFS, CFP
President & Founder |
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Letter from the President |
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Bear Market Survival Kit Series
Letter #3, June 8, 2010
Short-Term Memories and Long-Term Discipline
As if the stock market doesn’t already throw us enough curve balls and changeups, our own, all-too-human minds often trick us into swinging at air when it comes to making wise investment decisions. Behavioral finance, an entire field of academic inquiry, sheds light on why we investors do some of the crazy things we do, despite all logic.
Today, I want to focus on a behavioral trick known as RECENCY. Because recency is at its most dangerous during particularly volatile markets, I think it’s important to understand that: (1) you are probably subject to it, and (2) knowing this can help you avoid succumbing to it.
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Big Picture Perspective |
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Bear Market Survival Kit Series Letter #2, May 21, 2010
Investing with a Big-Picture Perspective
An ancient parable tells of three blind men who encounter an elephant along the road. One touches the pachyderm's belly and declares the obstacle to be a wall. The second man touches its leg and argues it’s more of a pillar. The third man grasps the tail and says, “Why, it's a rope.”
Making investment decisions in reaction to particular current events is a lot like trying to identify an elephant through a single touch. The facts may be accurate, but they can still mislead you in reaching the right conclusion.
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Market Volatility and Recession History |
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Comment About This Week's Market Volatility, May 8, 2010
As long-term clients know I rarely comment on market activity at any given time. What markets do over the short-term is irrelevant to my client's long-term goals. We are not going to change our plan due to market fluctuation. The only reason to modify a plan is if goals or financial circumstances change.
Next week I hope to release my 2nd in a series of articles entitled the “Bear Market Survival Kit”. The point of this series is to help you stomach the inherent market volatility and our apocalyptic news media by providing perspective and education. Since the markets are not cooperating by waiting for my series to be completed I felt I would provide this quick pick-me-up.
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| About Us: Located in Woodbridge, VA, Alliant Wealth Advisors (formerly Millennium Capital Management Corp) was founded to help a select group of families achieve all that is important to them financially. To achieve our mission we use a consultative wealth management process, which includes both investment consulting and advanced planning. Our approach assumes that every client is unique; every client has varying needs and objectives; and no two clients share the same risk tolerances, time horizons and dreams. In addition to providing our expertise we work with clients' existing advisors and, where there is a gap to fill, we use our own outside experts in the fields of tax, legal and high-end Insurance. |
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