CLIENT EVENTS ARCHIVES
The Club Dinner 2009
At the depths of the stock market lows in early 2009, Pryor McCormick invited clients, their friends and families, to The Club for a meal.
Every client was invited, and those who attended learned a great deal. Friends and family as well enjoyed the evening. Not all the news was good, but it is always better to know than to ignore.
It was fortunate to have scheduled Evan Harbot of Inland Realty to speak, since there was so much going on with them. Changes in dividend rates, repurchase programs and acquisitions were all explained. Good questions were asked and answered.
There was discussion of the three things Pryor McCormick had done to cope with the current difficulties.
Non-correlating assets, like Inland REITS, have given income, stability and growth potential for years that have nothing to do with the stock and bond markets.
It was made clear that, even though it can be tempting to just move to cash, buy CDs, and forget the stock market, investors must stay in the game. Over the last 30 years, after inflation and taxes, CDs have returned negative returns in 13 of those years. Further, in 4 of the positive 17 years, the real rate was less than 1% per year. Said another way, CDs have lost about half of their returns for the past 30 years to inflation alone. Since we anticipate the possibility, if not probability of higher inflation to come, we have to grow our assets.
The "Buy and Hold" way of doing things is no longer working. "Stay the course - hunker down - don't worry - ride it out"; all those stock broker sayings are not providing any comfort or results. If we have continued difficult times in the markets, we will need smarter, more agile management. We need to hire managers who have the ability to get out of the way when they see bad things coming. The professional lingo for this is "Tactical Management." We are calling it "Buy, Hold and Duck."
Our focus now is on absolute returns, rather than relative returns. We want to try to make money consistently, rather than just beating the market. In 2008 you could have lost 35%, over a third of your life savings, and still "beaten the market." We believe measuring performance against the market can be used as an excuse for not doing better.
VIEW OUR CLIENT EVENT ARCHIVES
The Ultimate Gift 2011
Taking Care of the Home Front November 2010
Knowledge is Power August 2010
Exclusively for Our Clients June2010
Kingdom Equity March 27, 2010
W E Donoghue March 11, 2010
The Ultimate Gift 2009
The Club Dinner 2009
PryorMcCormick Investments
4000 Southlake Park, Suite 200
Birmingham, AL 35244
Securities and investment advisory services offered through Sterne Agee Financial Services.
Member FINRA/SIPC.
PryorMccormick is not an affiliate of Sterne Agee Financial Services.