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WORDHOUSE WEALTH COACHING

September 25, 2008

Dear Clients:

This definitely is a tough market! You however are invested in the ONLY Nobel Prize winning academic lifelong investment strategy, Modern Portfolio Theory (MPT)!

What are you telling your loved ones, family, friends and coworkers when they ask you about your investments? Please help save the investors you care about from active trading.

Here are some key points that will empower you with the TRUTH regarding MPT:

  • To people who are scared about the future of the market, you could say:
    • “I am in the best position possible! I own over 14,000 different stocks and bonds.”
    • “I believe in buying low and selling high and that is exactly what I am doing by periodic rebalancing.”
    • “I have the best possible diversification, as I own the WHOLE global free market, that’s 38 countries!”
    • “Yes, the market is down everywhere. However, because I already own everything, when it goes back up, I will capture the gain.”
    • “Yes, I am down right now. My focus is on the long term results of the market, not the short term. Over time markets go up.”
  • Look at these facts as reported by Morningstar:
    • Attached are the numbers for the indexes around the world and the returns.
    • Despite the recent activity with the bailouts over the past week, some returns went up. And you were there to capture them!
    • The YTD (Year to Date) through the 1 year returns are almost all down, but when you look at the 3 – 5 year returns everything is positive.
    • Because we own all these markets we capture the returns when they happen, instead of trying to chase the market after the change happens.

We welcome your calls regarding any topic, including the market condition and your portfolio.

If you have any concerns about your returns or the market, please attend our MPT Bootcamp, FOG movie event, and Separating Myths class, all being held in the Grand Rapids area the last week of October.

Stay the course!

 

Sincerely,
Maria and Phyllis

Phone: 616-301-9049 · Fax: 888-797-8703
Wealth Coaching provided through Wealth Advisors Group, LLC.