Golden Bells March, 2009
Change is here.
Well over half of the value of the stock markets - the worth of American business - has been torched in the last year and a half. Some analysts are suggesting we have another 50% to go down from here.
The financial center of the world has been shifted from New York City to Washington, D.C.
The most sweeping and expensive changes in a hundred years have been made by politicians in the blink of an eye. Without the chance to even read the legislation, things like welfare reform (the most successful and meaningful reform of government since the Civil Rights era) have been gutted.
Budget deficits of $1 trillion per year are projected eternally.
Class envy has been elevated to a high political cause, pitting the half of Americans who pay no tax against those who do.
The times demand we act positively to protect and grow our life savings.
My clients and I have been blessed with the success of our more-or-less modified "Buy and Hold" strategy for almost 30 years. We have made money, lowered taxes and provided income through all sorts of markets. High inflation, shot Presidents, war in the Middle East and crazy things like cigars in the White House have all had affects on the markets at one time or another. We always benefited from staying the course, buying on weakness and remaining true to our belief that, in the US markets, all losses were temporary and all gains were permanent.
"The times they are a-changin'." - Bob Dylan
Given the changes now upon us, we must adapt to overcome. Starting now, our investment philosophy at Pryor McCormick will be founded on and informed by the following beliefs:
America is still special. We are blessed with the resources and the creativity to lead the world out of the dark.
Inflation is coming that will double and re-double the cost of living in the foreseeable future.
Smart, informed and aggressive people will prosper over time.
Making money consistently is more important than trying to beat the market.
What are we going to do about it? Buy, Hold and Duck.
Buy and hold has failed. In our changed world, we need to be able to duck bad things when appropriate. We will become more tactical and less strategic in our approach.
We are instituting tactical overlays to the majority of our accounts right away. Our money managers need to be able to move money out of harms way when they think it appropriate. They need to be able to duck. Tactical overlays give them that ability.
What does this mean for you? If you own an account that is managed by Alphasource, Pacific Financial Group or Visionary Asset Management, you have seen part of the answer. Add tactical overlays to those managed accounts and you have the complete package.
We want to talk to you soon.
We will meet with every client as soon as possible to make the changes needed. Of course, not everyone will have the same managers or risk levels, but everyone will be put on a different regimen.
The changes our country is going through will not allow us to do business as usual. We cannot afford to wait for your regularly scheduled meeting to address what is with us now.
Please email or call us to set up your appointment time. We don't have to meet face-to-face. A telephone call and mailed forms will do nicely for many people. Please have patience with us. We are dedicating all time possible to make these changes quickly and efficiently.
You Are Invited
We are hosting a client meeting at The Club on March 26th at 6:00. Mr. Evan Harbot of Inland will be giving us information about their Real Estate Investment Trusts that you may own. We will also be discussing details of our new, more tactical investment philosophy.
You will have the opportunity to ask questions about Inland, the markets, politics and any other issues that concern you.
Confidence and optimism is being replaced by despair in today's climate. You have friends and relatives who are hurting. Please feel free to invite them to come with you. We are changing from a sit-down dinner to a buffet to accommodate more people.
Please give us a call to reserve your seats and come join us. We are in this foxhole together. Let's start shooting back.
VIEW OUR GOLDEN BELLS ARCHIVES
What is Different This Time September 2011
Who is Atlas May 2011
Performance Anxiety February 2011
Ball of Confusion October 2010
Into the Storm June 2010
Year 2009
April 2009
March 2009
Year End 2008
Halloween 2008
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.