Five lessons learned the past 12 months

Posted October 29, 2009 by admin. tags:Tags: , ,
Lessons learned


photo by mikebaird

Written by Dave Young, President of Paragon Wealth Management

“Buy and Hold” strategy doesn’t work.
The investment strategy that Wall Street and mutual fund companies constantly promote called “buy and hold,” has been a complete failure over the past 12 years. It has generated negative returns when adjusted for inflation.

Market forecasts by “experts” provide no benefit.
Most forecasters completely missed this decline. The majority also missed the recent rebound.

Set your risk tolerance level.
Setting your risk tolerance properly before investing is critical to success. You must be comfortable with the amount of volatility in your portfolio or you are likely panic and sell at the wrong time. Once again, hoards of investors bailed out at the market bottom and then missed the entire rally.

Expect the Unexpected.
When building your retirement plan, hope for the best but plan for the worst.

Follow a disciplined, proactive investment strategy.
Remove emotion from your investment process. In the investment world, decisions based on emotion are usually wrong.

Paragon Wealth Management
is a provider of managed portfolios for individuals and institutions.
Although the information included in this report has been obtained from
sources Paragon believes to be reliable, we do not guarantee its
accuracy.  All opinions and estimates included in this report
constitute the judgment as of the dates indicated and are subject to
change without notice.  This report is for informational purposes only
and is not intended as an offer or solicitation with respect to the
purchase or sale of any security.  Past performance is not a guarantee
of future results.

Selecting a Financial Advisor

Posted October 22, 2009 by admin. tags:Tags: , ,

Finding a financial advisor can be daunting. This is because the title “financial advisor” is not regulated, and advisors range from annuity sales people, to insurance agents, to registered money managers.

The video  below explains what to look for in a financial advisor and how to quickly identify a financial advisor who is competent and offers you the best service for your money.

For more information, download “How to Select a Financial Advisor: The Top Seven Questions You Should Ask” on Paragon Wealth Management’s website.

Paragon’s 3rd Quarter 2009 Newsletter

Posted October 15, 2009 by admin. tags:Tags: , ,
Our Newsletter Cover

Paragon Wealth Management’s 3rd Quarter 2009 Newsletter is now available online. Click on the link below to download a copy.

Download ParagonNewsletter3Qtr2009

The print version will be mailed next week. If you are not on our mailing list, you can sign up on our website. Click on the link below to sign up to receive Paragon’s quarterly print newsletter.

Paragon Print Newsletter Sign Up

Newsletter Highlights:

Paragon’s growth portfolio, Top Flight, has generated a total return of 336.73% versus 33.30% for the S&P 500 since January 1, 1998 through September 30, 2009. Its compound annual return is 13.47% versus 2.49% for the S&P 500. Year-to-date, Top Flight has generated 27.65% versus 19.25% for the S&P 500.

Paragon’s conservative portfolio, Managed Income has generated a total return of 60.07% and a compound annual return of 6.12%. Year-to-date, Managed Income has generated 11.93%.

Visit our website to see our track record
for full disclosures and additional performance numbers.

“The markets are back into a positive, upward trend. All 42 of the global markets we track are above their 40-week moving average, which is very bullish.” -Dave Young, President and Founder of Paragon

The market propels upward when there is an absence of selling. This is followed by the cessation of bad news, which continues the rally as people realize the world is not going to end after all.” -Nathan White, Paragon’s Chief Investment Officer

 

Paragon Wealth Management
is a provider of managed portfolios for individuals and institutions.
Although the information included in this report has been obtained from
sources Paragon believes to be reliable, we do not guarantee its
accuracy.  All opinions and estimates included in this report
constitute the judgment as of the dates indicated and are subject to
change without notice.  This report is for informational purposes only
and is not intended as an offer or solicitation with respect to the
purchase or sale of any security.  Past performance is not a guarantee
of future results. 

Investment performance reflects time-weighted, size-weighted geometric composite returns of actual client accounts and not back tested hypothetical returns or performance. Investment returns are net of all management fees and transaction costs, and reflect the reinvestment of all dividends and distributions. The S&P Index is a market-value weighted index comprised of 500 stock selected for market size, liquidity, and industry group representation. Benchmarks are used for comparative purposes only. The Paragon Top Flight Portfolio is not designed to track the S&P Index and will have results different from the benchmark. Investments in securities involve the risk of loss.

 

Should you invest based on what you hear in the media?

Posted October 5, 2009 by admin. tags:Tags: , ,

Below is a video interview with Dave Young, President and Founder of Paragon Wealth Management and Nathan White, Paragon’s Chief Investment Officer. They discussed their thoughts on investing based on what is said in the media.

Here are a few highlights:

Question:

Why shouldn’t you invest in the stock market based on what you hear in the media?

Answer:

Most
of what you see in the media is sensationalized. This creates a dangerous situation for investors because they will make decisions based on inaccurate information.

For example, last year as the economy weakened, it would have been
normal for the stock market to sell off. A normal sell off would have
been a decline of 25-30 percent. Instead, the market went into an
extreme sell off, losing 56 percent of its value. Much of that sell off
was driven by a media created frenzy coupled with political uncertainty.

Swine flu example:

Normally, each year, the flu kills about 30,000 Americans. Since
April, when this started, there have been only 550 American deaths.

The difference with the stock market…

-With swine flu you can convince yourself you are sick or might get sick, but you can’t make yourself die.
-With investments, when following the media, you can scare yourself silly and sell all of your investments.
-Selling at the wrong time kills your chance for long-term investment success.

Question:

If you can’t make investment decisions from what you see and hear in the media, then what can you use?

Answer:

It is important to follow a proven disciplined investment strategy that doesn’t follow emotion. At Paragon Wealth Management, we create customized investment strategies for every client. Each strategy follows this criteria:

  • Provides effective diversification
  • Works in different markets and time frames
  • Is flexible and stable
  • Fits clients’ personal needs and goals

 

Paragon Wealth Management
is a provider of managed portfolios for individuals and institutions.
Although the information included in this report has been obtained from
sources Paragon believes to be reliable, we do not guarantee its
accuracy.  All opinions and estimates included in this report
constitute the judgment as of the dates indicated and are subject to
change without notice.  This report is for informational purposes only
and is not intended as an offer or solicitation with respect to the
purchase or sale of any security.  Past performance is not a guarantee
of future results.

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