Put Your Money Where Your Mouth is?

Posted June 30, 2011 by admin. tags:Tags: , , ,
American and Foreign Money


photo by epsos

Written by Dave Young, President of Paragon Wealth Management

I have never understood why many financial advisors sell products to their clients and don’t personally invest in them.

If they are good for their clients, they should be good for themselves, right?

This creates a situation where once the financial advisor receives their commission they often become disinterested spectators. They have no “skin in the game”, so to speak.

I believe that advisors who sell investments they do not personally own often do not fully understand the investments they are selling.

An advisor who is invested in what he is selling is much more interested and emotionally involved because they experience exactly what their clients experience. They feel the same stress that their clients feel when the markets go down and the same satisfaction when the investment goes up. It’s a lot easier to empathize with clients when you really understand what they are experiencing.

The same is true of the mutual funds. If a mutual fund is as good as advertised, then certainly the manager would want to own it, so that he can benefit along with everyone who buys it. In 2005 the SEC started requiring mutual fund managers to disclose how much money they have invested in the funds they manage.

Shockingly, recent studies show that only about 40 percent of managers invest in their own funds.

According to a recent study by Morningstar, on average, the more money a fund manager invests in their fund, the better the fund does. Interestingly, those mutual funds in which the manager invests their own money are ranked higher in the Morningstar rankings and have been in existence, more than twice as long as those who don’t.

I founded Paragon Wealth Management for the purpose of managing my own money 25 years ago. Twenty-five years later, I still have most of my stock market investments invested in Paragon’s portfolios, Managed Income and Top Flight. In addition, all of our eligible employees invest in Paragon’s portfolios through our 401(k).

We continue to be invested right alongside of our clients. Our motto is “Do as I do” versus “Do as I say.” It really makes a difference. 

Disclaimer
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.

Financial Advisor Received National Health Care Recognition

Posted June 23, 2011 by admin. tags:Tags: , , ,

Paragon News

Financial Advisor Received National Health Care Recognition

Dave Young, of Paragon Wealth Management, recognized for excellence in service to area medical professionals

Provo, UT (June 23, 2011) – Dave Young, of Paragon Wealth Management, has been named a 2011 Preferred Service Provider in recognition of his work with area health care executives and physicians.

Each year, US Medical Specialties Inc., a national medical consulting firm, recognizes excellence in service to the medical community in a number of disciplines including financial advisory services, real estate, insurance and legal services. The goals of the MD Preferred Program for financial advisors include identifying, acknowledging and promoting service excellence to the medical community.

The program provides medical professionals with a recognizable national icon that assures specialized services an understanding of the unique needs of physicians and their families.

“Doctors are very busy professionals,” observed Michael O’ Malley, project manager of MD Preferred Services. “When it comes to finding a service professional that specializes in serving physicians, they appreciate an organization that has done the research for them and has pulled a team together to make their lives easier.”

Every MD Preferred provider is selected for their commitment to serving the healthcare industry. Companies that have earned the MD Preferred designation are listed in an on-line directory available at www.MDPreferredServices.com. In addition to community based service providers, the directory recognizes national organizations that serve health care industry and support the MD Preferred program.

“We are privileged to receive this recognition,” said Dave Young, president and founder of Paragon Wealth Management. “It has been an honor to assist health care providers in the past, and we hope to help many more in the future.”

Young is one of less than 500 financial advisors nationwide that has received the prestigious MD Preferred designation.

About Paragon Wealth Management

Paragon Wealth Management is a registered investment advisor in Utah that actively manages all types of traditional and retirement accounts such as IRA and 401(K) rollovers, and pensions and trusts. Paragon’s wealth managers are not paid on commissions and clients are not charged a surrender fee. Paragon received the 2011 Best of State Award in Investment Advisory Services, the 2008 Best of State Award in Financial Services, was listed on WealthManagerWeb’s 2010 Top Wealth Manager’s list, listed on Wealth Manager Magazine’s 2008 Top Wealth Managers in the U.S. list, was included in the 2010 National Association of Board Certified Advisory Practices (NABCAP) Premier Advisors list and others. Call 800-748-4451 or visit www.paragonwealth.com for more information.

About MD Preferred Physician Services

The MD Preferred designation is bestowed each year to a diverse group of professional service providers. MD Preferred providers can be found at an online resource center available at no cost to the medical community at www.MDPreferredServices.com. MD Preferred also provides a medical job board, executive search services and a monthly E-Newsletter, The Advisor. Contact Mike O’ Malley at 800-260-8366 for additional information.  

Disclaimer:  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 conjunction with his/her advice. 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 stocks 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.

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Watch Your Head!

Posted June 16, 2011 by admin. tags:Tags: , , ,
Stack of money


Photo by AMagill

Written by Nathan White, Paragon’s Chief Investment Officer

The Federal debt hit its statutory debt limit in May.

Since then the Treasury has been using different measures not to exceed it thereby trying to give Congress time to raise the debt limit. Year-to-date the deficit has reached $927 billion ($57.64 billion in May alone) and the Office of Management and Budget projects it will hit $1.645 trillion for fiscal 2011.

Not to worry, next year the OMB projects the deficit will ease back to about $1.1 trillion. $1.1 TRILLION is so much better than $1.6 TRILLION! 

Total debt is now about the same as GDP at around $14 trillion. The debt limit debate will heat up during July ahead of the August 2 deadline that could trigger a “technical” default.

How will the bond and equity markets react? What do you think?

 

Disclaimer
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.

 

Paragon Received 2011 Best of State Medal

Posted June 9, 2011 by admin. tags:Tags: , ,
Winning Best of State 2011


Luke Tait, Patrick & Shannon Golladay, Cathy & Dave Young, Nathan White and Trudy & Dennis Meister

Paragon News:

Paragon Wealth Management was awarded a medal at the 2011 Best of State Awards in Salt Lake City on June 4.

Utah’s Best of State presented awards in 10 main categories. Paragon Wealth Management was recognized in the Business Services category. They won the Best of State Medal for investment advisory services.

According to Best of State’s chief executive officer Dana Layton, winners of the 2011 Best of State Awards were rated and judged on their impact in the community, excellence and achievement, and innovation and originality. This year’s judging was hosted by Salt Lake Community College’s Miller Business Resource Center and took place over a period of four full days. An independent judging process, featuring judges with category-specific credentials, has resulted in a confidential tabulation of results by the Gilbert & Steward accounting firm.

Paragon has focused on perfecting their investment strategies for almost 25 years. Dave Young started what is now called Paragon Wealth Management in 1986 when he sold his 12 franchise businesses and wanted to do more with his money. He spent the next year researching investment methods, and later started The Center for Financial Excellence. The name was changed to Paragon Capital Management and was registered with the Securities Exchange Commission (SEC) in 1993. It has since been changed to Paragon Wealth Management.

Disclaimer
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.

Stuck in the Middle

Posted June 2, 2011 by admin. tags:Tags: , , ,
Stuck

 photo by Alan Vernon

Written by Dave Young, President of Paragon Wealth Management

The markets had a rough day yesterday with the Dow Industrials down 279 points or -2.22 percent.

Other major indexes followed and were down about the same percentage. That was the biggest drop in almost a year.

In a weird way I guess that is good news.

The fact that a 279 point drop was the worst in almost a year. Looking back at 2008 and 2009, it felt like we had those kinds of drops on a weekly basis. So it appears that we have made progress from those dire days.

The markets seem to be stuck in the middle of a trading range since February. We hit 12,000 on February 4. Then, we hit 12,873 on May 2. Now we are back to 12, 269 today.

About 85 percent of our models are still positive.

The market is relatively oversold and investors are more pessimistic than they have been, both which are positive for the market. Corporate earnings are still good and expected to grow at about 16 percent. Also, market breadth is still decent. Our cyclical forecasts make a case for upward market momentum to last through August.

On the downsides, the ISM came in below consensus at 53.5 vs. expectations for 57.5. Other economic reports are coming in weaker than expected. The question is whether the decline in momentum is temporary or the beginning of a downward trend. Also, overseas, as they continue to try and figure out who is going to pay whose debts. Greece is actually threatening to default on theirs – which will put a scare into the markets if it occurs.

So what does this all add up to? Obviously, no one knows for sure.

If I had to make a guess it would be that we would continue to be stuck in this range for a while longer.

If we do see a correction, I would expect it to be relatively mild, in the five to 10 percent range.

However, it is a good thing that we don’t get paid to guess. We will continue to follow our models and invest accordingly.

Have a good weekend.

Disclaimer
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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