Skip to main content
Home Working together to build your tomorrow

A quest for the computerized investment tool

The Holy Grail of mutual fund investing back in the ’70s and ’80s was the concept of a computerized “black box” that would move money in and out of mutual funds in anticipation of future market moves. It was a search for anything that could time the markets. With most people being “newbies” to the practice of investing in mutual funds, this had an obvious attraction.

Focus on the goal and the investments will fall into place

Professional golfers within 150 yards of the green focus only on the target (the flag stick) and forget any and all of the 21 so-called “swing thoughts” that come into play to create the perfect shots we see on television. In the same vein, mastering the mental challenge of investing by focusing on a goal is more important than understanding all the qualities and uses of various investment products. Gaining a clear picture of an investment goal is a first step, and what follows is a march to achievement that may, or may not, take place with certainty.

The time for tariffs may come and go

So, a participant in one of our 401(k) plans with more than $1 million in her account called me in a panic to ask if she should roll all of her money into a money market fund. She was rattled by the consequences of the trade war that is now underway. From what she had been hearing, it sounded like the world was going to hell in a hand basket. This is true of any perceived threat to market resilience.

The afterglow of giving burns brighter with a tax deduction

The new tax law changes the dynamic for charitable giving, as many people’s altruistic efforts will not receive the same level of government encouragement — meaning, of course, that the tax deduction for some is not what it used to be. Studies show that this doesn’t matter as much as we might think, but it is still a factor for contributions beyond what just the warm glow of giving would have prompted. A short overview of some of the basic giving vehicles may offer a starting point for those wondering how their past giving patterns may be affected.

Is the China syndrome worth the risk?

With China in the news on so many fronts, I was prompted to check out some of the mutual funds that are categorized as “China funds.” Whoa! Some have gained almost 40 percent during the past 12 months. It’s clearly an economy that is growing faster than ours, and we sell a lot of products to them — starting with cars whereby General Motors sells more in that country than it sells domestically.

Subscribe to