Golden Bells October 2010
Ball of ConfusionWhen I was a student at old Thompson High School, The Temptations (a Motown band with Birmingham roots) had a hit song named "Ball of Confusion." Our family had a big stereo that played LPs and 45s with a little plastic adapter. One of the two 45s I owned was "Ball of Confusion." I wore the grooves out on that record, never dreaming I would play that song with The Temptations on stages in New York, Detroit and other places 30 years later.
That song seemed to put everything in perspective in 1970: Two years after Martin Luther King was shot and two years before George Wallace was gunned down. Many of the words are relevant today.
"Fear in the air, tension everywhere
Unemployment rising fast..."
Confusion is our enemy. It can trick us into bad decisions and robs us of peace of mind even when we do the right things. There have been a number of things this year conspiring to confuse us all.
"City inspectors, bill collectors..."
With our use of institutional money managers comes a lot of new names to learn: Donoghue, Pacific Financial, Emerald, Summit Alliance, Ameritrade, Schwab, and NEXT, not to mention FINRA. Sometimes you can't tell who is on what side without a program. This can be an example of our risking confusion to do a good thing. We recently had many clients sign paperwork to change custodians from Schwab to Ameritrade to lower fees. It was work for us and getting used to new statements for you, but it was worth it to save money.
New government regulations can make things harder to understand as well. Mark-to-market rules use arbitrary formulas to adjust values on Real Estate Investment Trusts like Inland. That will reflect on our reports as a loss even though nothing has changed with Inland or its holdings.
"Politicians say more taxes will
Solve everything...
Vote for me, and I'll set you free
Rap on brother, rap on..."
Washington has always pursued policies that can confuse: This year our Federal Government halted all US drilling operations in the Gulf of Mexico, perhaps costing our region 80,000 jobs, but also spent millions to subsidize Mexican exploration and development in the same body of water. Is November going to be red or blue? The market seems to be anticipating a big change, but no one knows.
"The sale of pills is at an all time high
Young folks walk around with
Their heads in the sky... "
We cannot take any pill (CDs, gold, buy and hold - there are powerful forces telling us to do just that) and just check out. The world is too complicated and demanding for us to just stick our heads in the sand and hope for the best. We need to be active and pay very close attention to our money.
How about all those trade confirmations you keep getting? Our managers have traded a lot over the past year or two and they are required to send you a notice for each trade. Tactical, active management generates a lot of paper but is usually worth it. How do you organize your records?
With the advent of new "Living Benefits" we can actually use the one word we never used before: Guaranteed. Some of the new investment products seem to be designed with people just like our clients in mind. We just have to make sure we all understand the nature and source of those promises.
"Nobody is interested in learnin'
But the teacher..."
Financial pornography: Dirty pictures are not the only harmful things now available to everyone on the internet. In our client meetings we strive to get everyone to understand the important things about their financial plans, but TV ads tell you to do your own research and "you can do this." Really?
Nostalgia can be a powerful emotion, especially in tough times. But there is no way I would swap my iPod, iPhone or computer for that scratchy needle on our old stereo. Confusion can be a sign of chaos but it can also just be the price we pay for doing things better.
The only way to battle confusion is with transparency and diligence.
Two of Pryor McCormick's three client absolutes deal with this issue: Every client has a schedule of face-to-face meetings (there is no substitute for personal contact) and we will communicate with every client in the manner they prefer (voice, email, snail mail or smoke signals).
The following is an excerpt from our "4 Quarters Process"-
1. Get your Investments Straight
- What do you own?
Why do you own it?
How are you doing?
{For a full copy of our "4 Quarters Process" worksheet, give us a call.}
What does the future hold for us? No one knows, but the best we can do is to fully understand where we are now, where we want to go and how we intend to get there. If you find confusion seeping into your thoughts, give us a call. We need to completely understand each other and be prepared for whatever comes next.
More than Money
There should be no confusion about the things Pryor McCormick is doing to help others:
Our Veterans benefits outreach is beginning to help people afford quality of care and lodging for family members.
Women of the PowerGrid continues to advance women's causes and provide real help in the community.
Special Knowledge is up and running - connecting and empowering families with special needs.
We are continuing a series of public and client webcasts to educate investors on current issues.
We will be in our new home at Southlake well before Christmas. Follow our progress on the "About Us" tab at www.pryormccormick.com. Please plan to come see our new offices.
Ball of Confusion
People movin' out
People movin' in
Why, because of the color of their skin
Run, run, run, but you sho' can't hide
An eye for an eye
A tooth for a tooth
Vote for me, and I'll set you free
Rap on brother, rap on
Well, the only person talkin'
'Bout love thy brother is the preacher
And it seems,
Nobody is interested in learnin'
But the teacher
Segregation, determination, demonstration,
Integration, aggravation,
Humiliation, obligation to our nation
Ball of Confusion
That's what the world is today
The sale of pills are at an all time high
Young folks walk around with
Their heads in the sky
Cities aflame in the summer time
And, the beat goes on
Air pollution, revolution, gun control,
Sound of soul
Shootin' rockets to the moon
Kids growin' up too soon
Politicians say more taxes will
Solve everything
And the band played on
So round 'n' round 'n' round we go
Where the world's headed, nobody knows
Just a Ball of Confusion
Oh yea, that's what the world is today
Fear in the air, tension everywhere
Unemployment rising fast,
The Beatles' new record's a gas
And the only safe place to live is
On an Indian reservation
And the band played on
Eve of destruction, tax deduction
City inspectors, bill collectors
Mod clothes in demand,
Population out of hand
Suicide, too many bills, hippies movin'
To the hills
People all over the world, are shoutin'
End the war
And the band played on.
Copyright 1970 Jobete Music Company, Inc.
VIEW OUR GOLDEN BELLS ARCHIVES
What is Different This Time September 2011
Who is Atlas May 2011
Performance Anxiety February 2011
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.