Well, the day has finally come: It’s now easy to make money in the market. All you have to do is buy what’s been going up. Why didn’t anyone see this before?
Tech stocks are higher, digital currencies like Bitcoin are jumping, and IPO’s are rocketing as generous company founders can’t wait to share their wealth with you. Experts on TV say the outlook is promising for these and other exciting assets. Rising prices seem to prove their point.
Then again, maybe it’s not as easy as it looks. There was a similar mania for tech and internet stocks in the late 1990’s. The NASDAQ Composite Index, full of tech stocks, peaked in early 2000 and then fell nearly 80% over the next two years. That ruined a lot of plans.
How We Do It
Our strategy is focused on a rational appraisal of investment value. We don’t try to guess what price will be paid by overly excited investors. A thoughtful strategy is easier to stay with as you pursue your long-term goals.
Stocks are ownership interests in real companies. We want to buy high-quality, well-managed companies at prices that reflect their business value. We want fixed-income assets that pay an adequate return to cover credit risk and inflation. A lot of research goes into this.
The latest edition of our Viewpoint newsletter can help you learn more about how we think about financial planning and investing. We hope you find each of the three articles to be original, easy to read, and interesting.
Follow this link to read the latest Viewpoint.
Barry Dunaway, CFA®
America First Investment Advisors, LLC
This post expresses the views of the author as of the date of publication. America First Investment Advisors has no obligation to update the information in it. Be aware that past performance is no indication of future performance, and that wherever there is the potential for profit there is also the possibility of loss.