The explosion of technology in the last 20 years has brought all sorts of firepower to our desktops such that many individuals feel empowered and encouraged do it themselves, become the next Warren Buffett.
Then there’s the media coverage that glorifies traders for making “a great call” on Company XYZ’s latest earnings release or interviewing Portfolio Manager John Doe and his top performing mutual fund the last x years.
If I had to sum up our purpose when it comes to comprehensive wealth management, I’d have to say we deliberately aim to help our clients do everything possible to “deserve success” in all market conditions. As George Washington was often quoted throughout his leadership, “We cannot insure success, but we can deserve it.”
When I think about individual investors, many factors have to be considered when constructing a portfolio that is appropriate for their given goals and objectives. Not only does one need to build a diversified portfolio of investments (across stocks, bonds, cash, and alternatives), they also need to incorporate other assets and liabilities on their balance sheet such as real estate, loans, concentrated holdings, business ownership, and human capital.
Do you own your own business? Will there be a time when you want to sell your business? What is the best time to sell your company? Do you have the right team of advisors to develop and implement a plan for selling your business? What value do you need to get for your business in order to reach your financial goals and achieve your desired standard of living? Do you have a comprehensive financial plan that gives you direction and clarity pre and post-sale?
For most entrepreneurs the sale of their business, their life’s work, the reason for jumping out of bed in the morning, is a critical moment. The Denver Business Journal has identified professionals that are experts and deal specifically with liquidity events for business owners to be panelist for the event. The panelists will provide valuable insight to get you ready when the time is right. The panel includes Steve Kopitz, CEO of skis.com and business owner who recently sold his business; Joanne Baginski, accounting Partner at EKS&H; Lisa D’Ambrosia, Director and attorney at Minor & Brown PC; Bob Forbes, President of Forbes MA Group; and Founder and CEO of Janiczek® Wealth Management, Joseph Janiczek.
All eyes are on the Fed this week.
What this means is that when the Fed and Central Banks are accommodative to growth…like they have been for a long time…we take other indicators, such as fundamental market valuation indicators, and give them a bit less weighting in our overall assessment of investment opportunities and dangers. Simply put, fighting the Fed or “tape” is typically considered foolish in the world of investing.
Our research indicates that regardless of when the Fed starts increasing rates from the current emergency level, that the increase amount and pace will be low and slow. Here’s a brief snapshot of some reasons why: