Happy Thanksgiving!

Posted November 25, 2010 by admin. tags:Tags: , , , , ,

Happy Thanksgiving! We hope you enjoyed your holiday with family and friends.

Every November we celebrate our anniversary. This year we are thankful for being in business for 24 years. To celebrate our anniversary this month, we will launch our new website on Monday, November 29 and start a new show on Paragon TV. Below is the first Paragon TV show. Let us know what you think!


 

 

Paragon cannot guarantee the accuracy of information from other sources. Opinions are as of the dates indicated only. This report is not a solicitation for any security. Past performance is not a guarantee of future results. Investments in securities involve the risk of loss. Do not rely upon this information to predict future investment performance or market conditions. This information is not a substitute for consultation with a competent financial, legal, or tax advisor and should only be used in conjuction with his/her advice.

 

Advisers urge Bond Investors to Abandon Ship in Face of QE2

Posted November 18, 2010 by admin. tags:Tags: , , , ,
Sailing Ship


Photo by kevincole

Quantitative easing causing plenty of unease among clients; interest rates are harder to pick than stocks.

Interview with Nathan White, Paragon’s Chief Investment Officer
Taken from Investment News
Written by Jessica Toonkel
November 16, 2010

Financial advisers are using the unexpected jump in interest rates to persuade clients that it’s time to get out of long-term bonds.

Last week, the Federal Reserve commenced its second round of quantitative easing in a bid to push mid-and long-term interest rates lower, and thus boost lending and spending. Instead, interest rates have spiked over the past few days, as the Fed has been forced to entice hesitant institutional buyers into purchasing government paper. Nevertheless, prices on longer-term bonds have continued to sag, boosting yields in the process. Indeed, the yield on the 10-year Treasury hit 2.91% yesterday, the highest since Aug. 5.

“Interest rates are harder to pick than stocks,” said V. Peter Traphagen Jr., an adviser at Traphagen Investment Advisors LLC, which has $240 million in assets under management.

Many advisers have been trying for months to persuade clients to bail out of long-term bonds. But investors, still shellshocked from the 2008 market crash, believe long-term bonds means safety.

But with QE2, clients are asking what they should do.

“I just had a conversation with a client the other day about what they should do in response to the Fed’s move,” said Nathan White, chief investment officer of Paragon Wealth Management.

“I told them that I would rather own a stock where I know the risk I am taking can be higher, but at least I am knowingly taking that risk,” he said.

Paragon has been shifting clients from long-term bond ETFs, like iShares Barclays 20+ Year Treasury Bond ETF (TLT), into dividend-paying equity ETFs like the SPDR S&P Dividend ETF (SDY).

Similarly, for the past few months Traphagen has started to move its clients’ fixed-income allocations from 10-year durations to four- to five-year durations. “We felt that clients were not rewarded enough to go out further on the yield curve and there was a potential that rates may move higher at least in the near term,” Mr. Traphagen said.

Paragon cannot guarantee the accuracy of information from other sources. Opinions are as of the dates indicated only. This report is not a solicitation for any security. Past performance is not a guarantee of future results. Investments in securities involve the risk of loss. Do not rely upon this information to predict future investment performance or market conditions. This information is not a substitute for consultation with a competent financial, legal, or tax advisor and should only be used in conjuction with his/her advice.

Advice on Investing in Long-term Bonds

Posted November 11, 2010 by admin. tags:Tags: , , , , ,
Climbing a mountain


photo by Shutterstock

Although bonds have become popular the past two years, our wealth managers advise investors not to put their money into long-term bonds because we believe investors could be hurt significantly if rates increase.

“It is our opinion that bond investors will be the next group of investors to get hurt,” said Dave Young, President and founder of Paragon. “In the 2000 bear market, stock investors got crushed. Then, many of those same investors moved to real estate for protection and got beaten up again in 2008. Treasury bonds performed well the entire time. As a result, since the beginning of 2009, investors have put a net $620 billion into bond funds while they have withdrawn $100 billion from stock funds. This has pushed rates to all time lows.”

Our portfolio managers claim that the current quantitative easing by the Fed may temporarily slow down increasing rates, but it won’t stop them.

“Many bonds do not have near enough return to compensate for their downside risk,” said Nathan White, Paragon’s Chief Investment Officer. “With interest rates so low, we believe that investors will not find the safety or the returns they seek in most bonds.”

Nathan said bonds have been in a 30-year bull market, which lulled investors into a false sense of security.

“Going forward, the returns that people will likely see in bonds will be very low at best or sharply negative at worst,” said Nathan. “Unfortunately for bond investors, we believe it could be the negative scenario.”

We advise investors to be aware of the maturities and quality of their bond holdings. We encourage investors to consider shortening the maturity of their bonds and adding high quality dividend stocks as an alternative.

About Paragon Wealth Management
Paragon Wealth Management is a wealth managementfirm that actively manages all types of traditional and retirement accounts such as IRA and 401(K) rollovers, and pensions and trusts. Paragon is a registered investment advisor and has fiduciary responsibility. Paragon received the Best of State Award in Financial Services in 2008, was listed on Wealth Manager Magazine’s Top Wealth Managers List in the U.S. in 2008, received the Small Business of the Year Award in 2008, and was listed on WealthManagerWeb’s Top Wealth Manager’s list in 2010.
Paragon cannot guarantee the accuracy of information from other sources. Opinions are as of the dates indicated only. This report is not a solicitation for any security. Past performance is not a guarantee of future results. Investments in securities involve the risk of loss. Do not rely upon this information to predict future investment performance or market conditions. This information is not a substitute for consultation with a competent financial, legal, or tax advisor and should only be used in conjuction with his/her advice.

2010 NABCAP Premier Advisors of Utah

Posted November 5, 2010 by paragon. tags:
NABCAP 2010

Paragon Wealth Management was selected by NABCAP to be included in the Premier Advisors of Utah list in the November 2010 issue of Utah Business.

Financial decisions can be among the most important decisions in an individual’s life. Capable advisors serve an important role in facilitating those decisions. Separating and distinguishing the strongest practitioners from the industry’s pool of advisors is a clear benefit to the investing public. The National Association of Board Certified Advisory Practices (NABCAP) is an unaffiliated, nonprofit organization that was created to tackle the daunting challenge of identifying top practitioners. NABCAP promotes higher standards and transparency, which are vital to the long-term success of the investing public.

MAKING THE GRADE

NABCAP and its board of directors created an unaffiliated evaluation process in which 20 categories of practice management are assessed. Advisors are invited and/or nominated to participate by submitting an online questionnaire. The multi-step verification process utilizes independent resources to assess the accuracy and truthfulness of the information submitted by participating advisory practices. NABCAP’s methodology is unique in deciphering advisors because it is primarily objective, not subjective, and helps add transparency for the investor’s benefit. The NABCAP list of Premier Advisors is not merely defined by assets under management or revenues produced. Instead, NABCAP attempts to identify top advisors regardless of size, firm or affiliation.

 

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Should I invest in bonds?

Posted November 4, 2010 by admin. tags:Tags: , , , ,
Deep Thought


photo by shutterstock

Dave Young was interviewed by Sunmee Choi and Mark Ely on Power Trader Radio a few weeks ago. Click on this link to listen to the interview.

http://www.tradecaddie.com/main/general/uploads/PTR091510.mp3

In this one-hour interview, they discussed:

-Should you invest in bonds?

-Will there be a double dip recession?

-Dave’s view on corporate earnings

-The political influence on the market

-How can we alleviate our fears?

-The influence of the media

-Positive factors (reasons to be hopeful)

-And much more!

Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from other sources Paragon believes this 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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