Afa Advisor Presentation[1]
- 1. “ Many record history, Few create wealth.”
- 2. 3 Principles to Investing CC0000.024.0304 March 15, 2004 By sticking with the basics of investing, you won’t get too far off course. Earnings Inflation Allocation
- 3. Inflation CC0000.024.0304 March 15, 2004 1968 1978 2007
- 4. Is the market fairly priced?
- 5. CC0000.024.0304 March 15, 2004 The Allocation Determines Return Based on the study by Gary P. Brinson, Randolph L. Hood, and Gilbert L. Beebower, “Determinants of Portfolio Performance,” Financial Analysts Journal , January/February 1995. The study analyzed data from 91 large corporate pension plans with assets of at least $100 million. Source: Odean, Terrance. “Do Investors Trade Too Much?” July 1997
- 6. CC0000.024.0304 March 15, 2004 Why is Asset Management Important? There are over 17,000 Mutual Funds and ETF’s in the market Do you create an allocation plan, based on yesterday’s Stars?
- 7. CC0000.024.0304 March 15, 2004 What distinguishes us from the crowd? We stick to the basics of investing that have been around for over 100 years. We are not just selling someone else’s canned goods, we actually manage no-load mutual funds, act as an advisor to a large institutional Broker/Dealer, and prepare our own in house research and model portfolios. Risk and Returns!
- 8. CC0000.024.0304 March 15, 2004 Structured Portfolios Active Management Active Management is one key to performance. We are continually researching the markets, both equities and debt. We are evaluating our positions on an ongoing basis.
- 9. CC0000.024.0304 March 15, 2004 Tracking Fund Activity We know that yesterday’s winners are not always tomorrow’s winners and that Funds change style. We manage Fund drift and make changes in our portfolios accordingly.
- 10. CC0000.024.0304 March 15, 2004 Correcting for Changes If we find a change needs to take place in a portfolio, we make it. We are proactive in managing our portfolios.
- 11. CC0000.024.0304 March 15, 2004 Adjusting to Your Needs We understand the clients need to stay flexible. We will not invest in something that is illiquid or can not be changed on a moments notice. We know your risk levels change.
- 12. CC0000.024.0304 March 15, 2004 Communicating changes We are in constant contact with you whether it is weekly emails, monthly letters, quarterly newsletters and statements, you will know how we feel about the market keeping you better informed.
- 13. “ Few create wealth.” Creating a portfolio based on your risk tolerance: Whether you are a risk taker or consider yourself quite conservative, we will create a portfolio of equities and bonds and other assets centered around you. We find most people “think” they are aggressive until the market gets aggressive with them….
- 14. CC0000.024.0304 March 15, 2004 Just Some Final Thoughts. We would like your business and we will earn it. We know the markets are difficult to navigate on a part-time basis. This is why we are working for you and your family’s wealth full-time.
Editor's Notes
- #2: Welcome to the Archer Investment Corporation Investment Education Workshop.
- #4: Three stamps still performed the same activity from 1968 to 2007. The services received by purchasing a stamp did not change. It was the value of the dollar. We can not overlook the importance of inflation. It gives us a guideline of the purchasing power of services or products.
- #5: This is one of the most telling charts I study with some regularity. It shows us where bond yields are in relation to the market. If you were to go back even further you would see that bonds have pretty much run their course and over the near term beginning in 2008, I think we can see bond yields start to increase. There is a principle called reversion to the mean. If you take a look at the pressure of prices and how the world economy continues to grow, we can expect the treasury bonds outside of 2007 to begin to retreat to the mean and potentially higher. For the rest of 2007, I do think the economy will continue to slow and we will be able to make money from bonds for a short period of time. I think the 10 year T will retreat closer to 4.1% as individuals get pushed out be the professional traders and then yields will continue to climb for a few years.