Global
Economy
This month we’ve
enclosed a report on Jim and Donna’s trip to
Here are a few comments on
the KMS Client Quarterly. The
“Global Economy” is something we’ve been talking about for
years and the comments in the first article will not come as a surprise to our
long-term clients. There is some
very interesting data there. How often have you heard us talking about
volatile markets and diversification?
Specifically global diversification? On page 2 there’s an article
on the herd mentality of chasing performance. Again, something we have cautioned
against for years. As more of these
“consultants” move toward foreign markets, it wouldn’t
surprise us to see our managers lightening up on the foreign markets over the
next few years and shifting towards a more domestic weighting.
The Volatile Markets, Hot
Sectors article again addresses the tendency to chase performance. Many of our long-term investors are well
aware of our strategy for investing in sectors. The article on “Guaranteed
Income” reinforces what we have been saying about annuities; the benefits
need to be carefully weighed against the costs. Regarding the last article Another
Global Phenomenon; over the past several years Jim and Donna have traveled
somewhat extensively and Jim is always curious and inquisitive about a foreign
country’s social schemes, retirement plans, tax structures, etc. He has found this retirement worry to be
universal. All nations seem to be
going down the same social road in one form or another and how the various
governments will handle the deficits of these programs will be very interesting
to watch.
In short, there’s a lot
of food for thought in this month’s newsletter that you’ll
hopefully find thought provoking. Anytime
you have questions or feel a review is in order, be
sure to give us a call.
We wish you a Merry Christmas
and Happy New Year.
P.S. Some
stats from the Dec.10th issue of Time Magazine that you might find
interesting. “Since 1945, the market has had 75 drops of 5% or more and
only 11 recessions.”
“The market declines of the past 11 recessions have lasted, on
average, just 8.6 months, with some coming and going in as little as 90
days.” Hopefully those stats
are a caution to those who are tempted to trade after every news report.
Disclosures: Past performance does not necessarily predict future performance. You cannot invest directly in an index and they do not reflect service fees, commissions, or transaction charges that are likely to change performance.
Securities through KMS Financial Services Inc.
520.884.7550
jpw@financial-architects.com
3971 E. Paradise Falls,