Baseball and your investment game plan
Spring is here and baseball season is upon us. In the majors, activity still occurs in the off season, as baseball veterans decide to hang up their cleats or re-ignite their careers with a new team. Baseball “experts” pontificate about which team will prevail in the play-offs. This always makes me smile. How in the world can anybody know at the beginning of April who is going to win the World Series in October?
Like a marathon, baseballs season is a long competition: 162 games during the regular season. With so many variables in play, there is absolutely no way that any expert, let alone an ordinary baseball fan, can determine with any degree of certainty which team will be crowned the World Series champion.
Would you want to attempt to pick a winner at the beginning of the season and be tied to that selection at the end of the season? I hope your answer would be “absolutely not”. There are too many uncertainties. What if the star player is injured? What if the brilliant rookie prospect turns out to be a bust? You are stuck riding your pre-season selection into the sunset.
Why would it make sense for someone to invest hard-earned money that way?
Many financial experts in the popular media will talk about how a particular stock or the market in general will do over the next five or ten years, or even over just the next year. But how much can change in just a year’s time, let alone an entire decade? It is not useful to speculate what the market is going to do; rather I watch and identify market trends. I prefer to listen to what the market is telling me right now, rather than speculate on what the market might do.
Every team that wins the World Series starts the season with a game plan and executes the plan for 162 games. At Wealth Advisors, our game plan is to constantly monitor the global markets and adapt with them. Being a successful investor is not about being correct 100% of the time, or even 99% of the time. Being successful, over time, is about constantly managing the risk, and being flexible to move in and out of the market as trends develop. Many investors feel as though markets collapse without any warning sign, which is rarely the case. The signs are there, but few diligently look for them, and even fewer have the confidence and discipline (a game plan) to react when the warning signs are prevalent.
Our approach is based upon the economic principles of supply and demand, which dictate moving into assets controlled by demand and away from those controlled by supply. Our game plan identifies leadership in the market and uses a disciplined approach with a set of rules that direct us to invest in the potential market leaders when they are favored, or move out of the market when it appears there are no longer any clear leaders.
Just like a scout for a major league team, each day our team looks at the market trends. We watch, interpret, and adjust. We are committed to your 2nd Half, and are working to ensure that your financial plan is in place to support your 2nd Half dreams and goals.
To Your Best 2nd Half,
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss.
