Market Prediction!!!

Listeners have been beating down our doors with one question. What will the market do in 6 months? How about a year?

Earnings reports are coming out and the market doesn't like what it sees. All sorts of debates on Capital Hill are raging. Unemployment is still high. Should we batten down the hatches? Not just yet …

There are plenty of places to go on the Internet and see what people think the market is going to do. Turn your TV to Fox News, CNN, Bloomberg, or MSNBC. You will see analysts of all backgrounds telling you what to buy, what to hold, and what to sell immediately.

You want the true prediction….

In 2 words, the market in 6 months will be…

Nobody Knows!

All the fortune tellers you see on TV and read on the Internet are making their (educated?) predictions for entertainment value. They keep you glued to their channel by making you fear financial Armageddon or to make you feel good with greed about the current bull market.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

Too Much Risk or Not Enough Safety?

If you have been reading along with us (and if you haven't, you can easily catch up by checking the archives along the right side of the page), you would probably imagine that we think people have too much risk in their portfolio. 

Unfortunately, this is not from what we think but rather what we know from many of the new clients that come to our firm looking for added safety. We get the idea from the factory worker in Lewistown who planned to retire at the age of 60, but is no longer able to. It comes from the 75 year old widow in Mifflintown who lost 40% of her money after her broker told her that her money was safe (it was only invested in 85% stocks). It comes from the retired couple in McAlisterville living on their investments and social security that now have 35% less income.

We can all benefit by having more safety in our portfolios. We have learned that the average person (and many financial professionals) lacks the ability to talk intelligently about risk. Instead, we counsel on what degree of safety is wanted in their retirement. Brokers tend to avoid the word safety because of their products' lack of it.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

Too Far Back in the Market?

Big returns numbers, and your desperation to get back to "even", lure many investors back into the market.

As investors (and also as humans), we have a short-term memory about what happen to cause us to lose money. We are all certain that this time will be different. We'll be more prepared when the market falls (notice we said when). Looking back the last 10 years though, many investors have not made a dime on their accounts.

From a recent Wall Street magazine, "Many advisors assured their clients to stay the course with their current portfolios. Now they are reporting that many of them are back to 2007 asset levels and ready to take on more risk. At least one advisor says that his clients are taking on too much risk."

In the article, the advisors condoning riskier behavior where either younger in age or experience, while the more experienced advisor was cautious about the risk. After 25 + years experience in the business, we know that there our too many factors that can upset a fragile market and the costs associated to fix your account. The needs for a higher degree of safety and additional guarantees are greater than ever before.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

Death of Modern Portfolio Theory

Modern Portfolio Theory is an investment theory in which you try to maximize return and minimize risk by diversifying among several different asset classes. It has long been held as the key theory in creating portfolios for every broker and planner since it's creation.

The "pie" or asset allocation model that so many investors have seen was designed to make your portfolio meet a risk level. Many brokers sold the pie as increasing safety to their clients. The theory was put to the last beginning in the fall of 2008 and failed miserably at the expense of investors.

All of the assurance of you being properly diversified came crashing down over the last two years. Many of our listeners, and investors like you, watched as your portfolio crashed 30, 40, or 50%. The worse part was there was nowhere to hide (not even cash as we saw one of the largest money market funds break the $1/share mark).

Since you can't diversify your assets to save your future, what can you do? The problem with the theory is just that. It is a theory. People today are aware that they have very little safety in their accounts when they were told (or sold) as being reasonably safe.

After extensive research, we found that over 90% of retirement and investment accounts lack a guarantee of principal. By making safety a cornerstone of our portfolios, we saved our clients millions in wealth during the market slide.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

A Different Look at Safety

All investments have real risk associated with them. Some have more, some have less, but they all have some. In good times, no one stops to ask what if. What if the market falls? What if the economy falters? What if my needs become greater? What if the unexpected happens?

At WealthKare, we don't look at how much risk you can tolerate. We look at how much SAFETY you NEED. Only through understanding this, can you be properly prepared for the what if's of life. Understanding of a clients' needs cannot be assessed through a 15 question quiz, but can be determined over time through conversations about the dangers of risk and having realistic goals.

Because of the time involved, your portfolio cannot and should not be stuck in a rigid mold, but be able to allow the flexibility needed to make the changes as they are learned.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

The Playoffs

As we are breezing through January, the thought on many men's (and even most women's) mind is the Super Bowl. We watch the game and cheer for the team we want to win. Some people still even have hope it will be their team that makes the big game (sorry Steelers and Eagles fans).

But no matter how hard we cheer and agonize over each game, we are just spectators.

Most of the people we have talked to over the past 25 years are the same for their finances. The "game" is their retirement and their money. Unfortunately, they are letting their broker play it for them. What makes it worse, the brokers, planners, and even the do-it-yourselfer's are really just on the sidelines. 


The real players that control your retirement and investment accounts are the fund managers. They are executing the plays that will determine the game. To make the playoffs, your retirement needs to have the best players on the field.


Today, more than ever, people need to become active participants in making sure they have the right players on the field. 


To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)



To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

Can You Be Too Safe?

If you have been reading along with us so far (and if you haven't, we highly recommend you go back and catch up), you probably think we would answer "no" to that question.

While it is true that many Americans do not have a sufficient amount of safety, you ABSOLUTELY can be too safe. If you have kept your money out of the market the last 18 months because of the risk of another crash, you missed a lot of growth in 2009. This is just one example of having too much safety.

Because of ignoring safety when your portfolio was created, many people panicked, got out, and stayed out of the market because of fear. Brokers and planners usually ignore the safety discussion because the products and programs they sell have risks.

When building (or rebuilding) your portfolio, safety needs to be balanced to suit YOUR needs and REALISTIC goals.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)