EVERYTHING IS UP–NOW WHAT DO WE DO?
Written on June 10, 2014
SAM OGRIZOVICH, CFP®

EVERYTHING IS UP–NOW WHAT DO WE DO?


I was recently going through some old files (yeah, I know, get a life Sam) and came across this letter that was sent to all clients in January 1994. Those same principles apply today.

This is an example of why we suggest that our clients read more history and fewer forecasts:

Our clients enjoyed very good investment results in 1993.  Both the stock and bond markets, domestic and international, did extremely well.

Investor sentiment is also very high.  Money is pouring into stock and bond funds at a record pace.

It’s at times like this we need to be reasonable, unemotional, and objective. We must not chase yesterday’s best fund, industry, or market.  We must continue to follow basic sound principles.

Maintain an awareness of your objectives and risk tolerance. 

Keep you portfolio balanced. Don’t’ chase last year’s winners.  

The Lexington Strategic Investors Fund did 270%.  Who picked it in January 1993?

Don’t be shocked by market adjustments. They will happen,and perhaps soon. Remember–that will be the worst time to sell.

Don’t try to time market peaks and valleys. Nobody does it consistently.

If you are invested for the long term, stay invested. You could handle a short-term paper loss.

If you are not currently invested, consider moving into the stock market gradually. This could reduce volatility.

My final recommendation–don’t worry.   Have a happy and healthy 1994.

Written January, 1994


All information is believed to be from reliable sources however we make no representation as to its completeness or accuracy.  All economic and performance information is historical and not indicative of future results. Any market indices mentioned are unmanaged and cannot be invested in directly.  Additional information, including management fees and expenses, is provided on our Form ADV Part 2. All investments involve risk and past performance is not a guarantee of future results.