newsletter
Reinforcing Long Term Strategy
June 2010
Enclosed is our KMS Client Quarterly* for the summer. We think some of the items touched on this quarter reinforce our long term strategy of proper asset allocation and global diversification with a focus on long term objectives.
While the issues affecting the eurozone have made for
tumultuous markets recently, we think a lot of this is beneficial in the long
run. Not only does it create buying
opportunities for our managers, but it is a wake up call to governments and
politicians around the world that they must get their national debts under
control. It could also be a wake up
call to voters, particularly in the
One other point worth making is that all of the news on the
staggering debt of not only EMU countries, but also in the
We are pleased to include a report* this month from several
of the portfolio managers with Franklin Templeton. The commentary is a great example
of the type of insight we receive on a regular basis. Unfortunately, we’re seldom able
to share this type of commentary due to the high level of regulation and
scrutiny our industry is subject to.
It is important to remember that these are the people on the front
lines, doing extensive research managing our money and they are required to
make their track records verifiable and public. We wish the columnists and gurus in the
media (who do not have public track records) were subject to the same
regulations.
Remember – Wall
Street profits from activity.
If Wall Street can get you to concentrate on short term gyrations of the
market and the daily news headlines rather than focusing on the long term value
of positions that you own and how your portfolio is being managed, Wall Street
will win. We do not want to be in a
game with short term, big money professional traders. This would be like going to Vegas and
betting against professionals in a poker game.
As usual, if you would like to discuss any of these issues
or you feel a review is in order, be sure to give us a call. Have a great summer!
In the words of the late Sir John Templeton:
“People
are always asking me where the outlook is good, but that’s the wrong
question. The right question is: Where is the outlook most miserable?”
*Please call our office at
520-884-7550 if you would like to receive a copy of the KMS Quarterly and/or
the Franklin Templeton report.
Securities through KMS
Financial Services Inc.
520.884.7550
jpw@financial-architects.com brienne@financial-architects.com
3971 E. Paradise Falls,