July has been a month of questions due to heightened volatility in the markets. It’s understandable and I hope I answered yours. A great thinker (aka Burton Malkiel) once wrote “A Random Walk Down Wall Street”.
Here’s one of my favorite parts,
Expectations and Predictions
“Predicting future earnings and dividends is a most hazardous occupation. It requires not only the knowledge and skill of an economist, but also the acumen of a psychologist. On top of that, it is extremely difficult to be objective; wild optimism and extreme pessimism constantly battle for top place…
The point to remember is that no matter what formula you use for predicting the future, it always rests in part on the indeterminate premise..
Expectations about the future cannot be proven in the present.”
In practice, I believe this to mean I must:
Thoroughly understand the needs of the client.
Analyze data and stay informed.
Secure a path toward meeting the client’s goals first.
Monitor, monitor, monitor and adjust if warranted.
And, most importantly, never even begin to believe I’m a soothsayer.
2015 – Eye on the Ball
This year began with my advisory/fee-based clients knowing that a specific plan was implemented and for a variety of reasons. Many of these have played out in the first half of 2015.
I can’t predict what the second half will bring but I am confident that most goals will be met and my eye will remain on the ball.
Let me know if you have any questions or need any additional resources.
Until next time,
Susan R. Linkous, AIF
The Linkous Group, Ltd.
A Registered Investment Advisor